91探花

Today’s show retail trade insolvencies were up 9% in the year to July 2024 (from 2,011 in the 12 months to August 2023, to 2,197 in the 12 months to August 2024). However, insolvencies were down nearly 14% month-on-month (from 202 to 174) providing a glimmer of hope in the short term.

The out today, show retail sales volumes increased by 1% in August. But they fell during prior months, which was put primarily down to bad weather. There was a limited increase in consumer confidence, which it is thought is being impacted by the long lead into the upcoming Budget on 30 October.

Gordon Thomson, restructuring partner at leading audit, tax and consulting firm 91探花, comments: “While retail insolvencies saw a marked dip in July, they do continue to tick upwards year-on-year. 2024 has thus far been tough for the retail sector. High interest rates and stubborn inflation continue to limit consumer spending, and poor weather throughout the year has continued to thin out footfall numbers on the high street. These numbers show how important the upcoming Budget will be for many businesses that continue to struggle against a backdrop of economic headwinds.

“There is hope. With the marked dip in month-on-month insolvency numbers, there was strong growth in retail sales in August too which makes it more likely that the wider economy returned to growth last month after flatlining earlier in the summer. There was further good news on the inflation front too. Total retail inflation fell to -0.2%, the first negative reading since February 2021.”