New Year figures indicate a drop of 6% in the number of retail companies entering administration in 2013. There were 183 retail businesses that entered administration in 2013, which is the same figure as that of 2011. In 2012, 192 retailers went into administration. Ashley Park Financial Solutions are certainly glad to see things moving in the right direction.
There was, however an elevated number of retailers entering administration in the final quarter of the year, with 41 retailers in financial trouble compared with 37 for the same period in 2012.
The data was compiled by Deloitte, and their spokesperson has stated that this drop in cases of administration shows a rebalancing of the high street. He cited the losses of Blockbuster and Jessops and predicted that we are less likely to have major high street casualties like these again this year.
While it doesn’t necessarily mean that the demand for high street retail products is increasing, it does indicate that the retailers left standing can benefit from the gaps in the market. Christmas trade was reasonable, though Internet services still seemed preferable, with many shoppers opting to click and collect. January sales have so far been busy, with John Lewis reporting healthy sales.
According to the figures, there has been an overall drop in businesses entering administration this year from 1,833 to 1,629. The only sector that saw an increase in administrations was the health and social care sector.