2012 saw an increase in retailers going into administration. The number of retailers falling into administration in 2012 increased by 6% compared with 2011, according to research from accountants Deloitte. Larger chains suffered with Peacocks, La Senza, Blacks, Game, Clinton Cards, JJB Sports and Comet all entering administration. However there was an improving picture in the last 3 months of the year according to the accountants.
It seems the principal problem is there are just too many shops with too many stores. The usual pressures from dampened consumer spending and online sales of course still apply. However it should be noted that some retailers are doing extremely well. John Lewis, Next and Waitrose have all seen strong growth in the last few months with Waitrose having a record Christmas and Next seeing a rise in like for like sales of 4%.
Any pick up in the economy will often make the strong and dynamic firms prosper at the expense of the weaker ones. So despite improved economic conditions it is likely that competition will become fiercer and there will be an increased number of business needing help.
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