Retailers Marks and Spencer Group PLC (LSE:MKS) and J Sainsbury PLC (LSE:SBRY) were among the FTSE 100 fallers on Monday after new research highlighted the soaring rate of insolvencies in the industry.
Almost 20% more shops went bust in the last twelve months compared to a year earlier, Mazars data showed, as the effect of higher interest rates hit high streets and consumer spending.
In bald numbers, some 2,200 retailers went into administration in the twelve months to the end of January, against 1,843 a year earlier.
UK base rates have been held at 5.25% since August, and the burden on debt-laden shopowners is taking a toll.
Rebecca Dacre, a partner at accountancy firm Mazars, said: “We are unlikely to see the retail sector trading comfortably until interest rates start to fall.”