Retailers are increasingly buckling under the pressure of the economy, according to data, as the number of insolvencies in the sector surged in the last year.
Law firm RPC said around 1,942 retailers went bust in 2022 to 2023, up from 1,243 the year before, a 56% increase.
Shoppers pulling back on spending was cited as the main reason insolvencies reached a decade high.
“Despite the challenges faced by the sector, the insolvency of financially weaker retail businesses is creating opportunities for stronger players,” said RPC head of restructuring and insolvency Finella Fogarty.
“These businesses may be able to increase their market share through strategic acquisitions of smaller competitors,” Fogarty added.
Next and Frasers have been two prolific large retailers in that regard, with the former buying fashion retailer Joules and homeware seller Made.com in the last 12 months, while Mike Ashely’s company bought tailor Gieves & Hawkes and ISawItFirst.