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Trade News Archive July 08 June 08 May 08 April 08 March 08 February 08 January 08
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30th July 2008
Retailers resist pressure to go out of business
Fewer retailers have gone bust in the first half of the year, a new study has shown.
Accountancy firm Deloitte showed that there was a 16 per cent drop in the number of retailers going into administration in the second quarter of the year when compared with the previous three-month period, website theretailbulletin.com reported.
What's more, the number of retailers going bust in the first half of 2008 is down 30 per cent on the same months in the pervious year.
However, Lee Manning, reorganisation services partner at Deloitte, explained that some sectors were still struggling.
He said that traditional book, music and DVD retailers have had a tough time in the past two years, but added that the data seems to indicate "the worst effects of this maturing market may have been felt".
"The same cannot be said for fashion clothing, however, where we are starting to see the effects of the credit crunch," Mr Manning added to the website.
"Fashion is often one of the first sectors to be hit hard as consumers' discretionary spend is tightened and those retailers whose customer offering isn't spot on experience sales slippage."
The expert added that he expected smaller businesses would be more affected by the credit crunch than their larger rivals.
"In particular, we would expect furniture and household related retailers to experience an increase in failures next quarter," he concluded.
(c) 2008 Adfero Ltd.
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