According to the research of multiple retailers, in 300 town centres – conducted of behalf of PwC – clothes, shoe shops and jewellers have been among the hardest hit in 2011. But supermarkets, convenience stores and cafes have bucked the trend, showing growth in the first half of the year.
The research finds that there were 375 retail insolvencies this quarter, which is nine per cent more than the same time last year. The Local Data Company’s research found that of the eight high profile, failed or struggling, high street retailers that were examined, on average they looked to close over half (51%) of their stores.
Mike Jervis, insolvency partner and retail specialist, PwC, comments: “Retailers will continue to struggle for the next six months and we will see high levels of financial distress among certain types of retailers such as clothes shops.
“The combination of rising inflation and dented consumer confidence has led to people increasingly trying to find the best deal online. This has made life difficult for store-dependent high street retailers who have seen a drop in sales and reduced footfall.”
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Friday, 8 July 2011