RETAIL experts are warning that the number of shops and businesses closing could rocket this year.
Ten major retailers have collapsed into administration since November last year.
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The number of shops going under could rise by 71% in 2023, business consultancy Quantuma has said.
Two of the biggest high street retailers that folded in recent weeks include the clothing chain M&Co and stationary shop Paperchase.
M&Co a Scotland-based clothing chain fell into administration on December 11.
Yours Clothing purchased M&Co’s intellectual property and brand, but this has left the 170 stores and 1,910 employees without an obvious future.
Paperchase collapsed into administration last month and Tesco purchased the stationery chain‘s brand days later.
But 106 of Paperchase branches are set to close for good.
More retailers are under threat as people stop spending in the cost of living squeeze, according to Quantuma.
Carl Jackson, Quantuma chief executive and retail sector restructuring expert said that disposable incomes are expected to fall by 70% reducing shopper’s spending power.
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He added: “Reliance on overseas supply chains, particularly in the Far East and China, has exposed UK-based retailers to substantial forex challenges, the impact of which has seen price hikes, as suppliers seek to pass on costs.”
Millions of workers are facing a cut to pay as inflation continues to eat into household earnings.
And while the rate of inflation dipped for the third month in a row prices are still rising.
The annual rate of inflation fell from 10.5% in December to 10.1% in January, according to the Office for National Statistics (ONS).
Figures released by the ONS yesterday showed that total pay in real terms fell by 3.1%.
The combination of sky-high prices and falling incomes in real terms means that household incomes are squeezed.
And the knock-on effects mean that consumers reduce their spending.
Seven retailers have gone under since December 2022. That includes M&Co, Paperchase, Tile Giant, Traidcraft, Middletons, Snug, Bateman Opticians, Shaws the Drapers, In-Time and Made.com.
The bust businesses threaten to leave 361 stores vacant and put 3,215 jobs at risk, according to the Centre for Social Research.
Some retailers have already started charging shoppers to return items when shopping online to help reduce their costs.
New Look recently introduced a £1.99 fee for shoppers wishing to return items via post.
It follows moves by Zara and Boohoo who first introduced returns charges back in 2022.
We’ve listed all the major chains closing stores on the high street this year.
The Covid-19 pandemic was the last major crisis to push struggling retailers over the edge.
The high street lost big names including Arcadia, the owner of Topshop, Oasis and Warehouse, Laura Ashley and LK Bennet.
The department store, Debenhams, also closed its doors for the final time in May 2021.
