Home » Finance » 140 UK retailers in ‘critical condition’

140 UK retailers in ‘critical condition’

Infomatrix OneView Financial Reporting SoftwareMore than 100retailers are in a critical condition and will probably follow HMV and Jessops into administration, one of the UK’s top business recovery firms has warned.

Julie Palmer, a partner at Begbies Traynor, said 140 retailers were on the firm’s “critical watchlist” – defined as businesses that had received either a winding up petition or a county court judgment against them in excess of £5,000.

There had been a 35% rise in the number of retailers experiencing significant distress before Christmas, meaning 13,700 shopkeepers either experienced a sustained period of deteriorating finances or were in receipt of a county court judgment of less than £5,000.

The health of the high street is key to employment data and consumer confidence. With some 3 million people working in the UK retail sector, it is the biggest private sector employer.

“Overall, the sectors that are most vulnerable include those affected by shoppers moving to online or digital formats, such as specialists in music, games, books, news and stationery along with the specialists that are most affected by the convenience and price-driven offering of the supermarkets, which includes chemists, health and beauty, and alcohol retailers,” Said Palmer.

The gloomy outlook for the sector came as the music chain HMV followed camera-supplier Jessops into administration after lengthy battles by both companies to unearth business models that could compete with online retailers.

Blockbuster UK is the latest retailer to collapse into administration!

Michael Ingram, a market analyst with City broker BGC, said: “UK retail woes don’t end there. Disposable income in the UK is still being squeezed mercilessly: wage growth is running at less than half the rate of inflation (1.3% versus 2.7% on the consumer price index and 3.0% on the retail price index), while inflation in non-discretionary items, such as fuel and water tariffs, is running at over 6%”.

Comparing the present economy, to past trends and future forecasts in the Finance Sector, can obviously determine current risk evaluations on future decisions. By adopting Infomatrix OneView, businesses can benefit to achieve increased performance, growth and market share.

Oneview’s flexible BI Platform provides web based reporting, displays financial dashboards and, its multi dimensional analytics presents all critical business information in a single view.

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