Today’s company insolvency statistics show there were 170 retail trade insolvencies in January, down 2 per cent for the 12 month period from February 2024 (174), but up 21 per cent on the previous month. Overall, wholesale and retail trade experienced the second-highest number of insolvencies with 15 per cent of distress cases in the 12 months to January 2025.
Gordon Thomson, restructuring partner at leading audit, tax and consulting firm RSM UK, said: “With the golden quarter behind us, most retailers are continuing to weather the storm, but lacklustre consumer confidence and underwhelming sales are about to collide with looming tax rises and an increase in the regulatory burden.
“In a time of global economic uncertainty, having visibility of cashflow can help retailers take action to mitigate headwinds or indeed unexpected shocks to trade. If real wages continue to increase, the weather brightens and interest rates tick down as expected, then we could see renewed confidence as the year progresses.
“However, without intervention, it might be too late for some. Retailers will be looking to next week’s spring statement to provide support (possibly temporary) from the Government to help bridge the gap before the consumer-led economic recovery kicks in.”
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