Overview

• The number of UK retailers in critical financial distress rose by 25% in the final quarter of 2024 to 2,124, according to insolvency specialists Begbies Traynor.
• General retail businesses, including furniture and household item sellers, saw a 29% increase in critical distress, while food and drug retailers experienced a 17% rise.
• Boxing Day footfall across UK retailers fell by 7.6% compared to 2023, with many consumers opting for online shopping or pre-Christmas purchases instead.
• Retailers are struggling with rising operational costs, weak consumer confidence, and competition from low-cost online platforms like Temu and Shein.
• Despite a slight annual decline in critical distress cases, analysts predict elevated insolvency levels in 2025 due to increased wage costs, national insurance hikes, and tax changes.