The British retail sector benefited from a significant drop in company administrations last year, with the number falling by more than a third between 2013 and 2014.
According to Deloitte, the total dipped by 35% between the two years, from 183 in 2013 to 119 last year.
This year the number of collapsed stores fell to 45, 32% lower than the 66 seen in the first half of 2014 and less than half of the total of 95 retailers that went into administration in the first six months of 2013.
Stores of past
While the sector has been hit by a series oh high profile businesses going into administration in recent years, including Phones4U and La Senza, the report also states that there has only been one well-known insolvency this year at fashion chain: Bank.
Consumer confidence ‘grows‘
Lee Manning, restructuring services partner at Deloitte, said improving trading conditions boosted retailers in 2014, following a few turbulent years.
He added: “After a few turbulent years and something of a clear-out, the retail sector is now benefiting from the calmer waters of a stable economy. Meanwhile, these figures align with our expectation of a shift away from using administration as a restructuring tool for businesses.
Ian Geddes, UK Head of Retail at Deloitte, said: “Retailers‘ requirements for their stores will continue to change. For many this will mean fewer stores, while for some it may mean more stores to support the growth of their online sales. The overall outlook is positive, and as consumer finances continue to improve this will be felt even more in the retail market.”
Emily Thornhill
