Retail administrations down 6% on last year
2 January 2014
- 183 retail administrations this year, down 6% on 2012
- Total administrations across all sectors down 11% in 2013
The number of retailers falling into administration in 2013 decreased by 6% compared with 2012, according to research from Deloitte, the business advisory firm. 183 retailers entered administration in 2013, compared with 194 in 2012 and 183 in 2011. However, there was an increase of 11% in the last three months of the year compared to the fourth quarter of 2012 (41 vs. 37).
In total, 1629 businesses went into administration in 2013, compared with 1,833 last year, a fall of 11%. Almost all of the sectors tracked in our analysis saw a decline in the number of business failures this year, including some of those sectors most affected by the economic difficulties of the past five years. There was a 17.5% decrease in administrations in the hospitality and leisure sector (141 vs. 171), a 4% decrease in manufacturing administrations (273 vs. 284) and a 24% decrease in property and construction administrations (322 vs. 426). Outside of retail, only the healthcare and social services sector saw an increase in administrations of 7% (45 vs. 42).
Lee Manning, restructuring services partner at Deloitte, said: “The high street has undergone a re-balancing, and this is what is being reflected by these figures. A year ago we were about to see HMV, Blockbuster and Jessops enter administration, but I would not expect as many high profile retail casualties this time round.
“This does not mean demand is increasing, more that the clear out will benefit those still standing in 2014. Christmas trading appears to have been reasonable, though not spectacular as customers opted to stay away from the high street in favour of click and collect. It is essential that retailers address the fundamental issues affecting the industry. 2014 is likely to be marked by further closure programmes, both within and outside of formal insolvency processes.
“What’s most notable is the decline of administrations in the property and construction industry. This is a significant reduction, and reflects the recovering health of the sector. This drop has, unsurprisingly, had a positive knock-on effect for the hospitality and leisure sector, which has also seen a decrease in administrations.”
Notes to Editors:
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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Last Updated: Tuesday, December 31, 2013