More than 30,000 UK retailers are in “significant financial distress” despite it being the busiest shopping period of the year, new data has shown.
Research from insolvency firm Begbies Traynor showed that 8,500 of the 30,000 retailers facing falling sales are online retailers. The figure is up 2% on 2017 ad up 49.5% since 2007, the Guardian reported.
However, at 3,300 the total number of fashion retailers in difficulty is down 6% compared with last Christmas, and the overall number of high street retailers in distress is down 8% to 17,226.
Julie Palmer, partner at Begbies Traynor, said: “As we near the end of the crucial festive period, many retailers are pinning their hopes on a final flurry of shopper activity this weekend, as more are plunged into significant financial distress. To say 2018 has been a tumultuous year is something of an understatement. Even online, which has been hailed as the future of the sector, is not immune.”
The latest data from Springboard showed footfall on the Saturday before was Christmas down 0.7% compared with last year.