The number of retail businesses going bust is set to continue next year as rising unemployment is expected to continue to impact consumer spending.
The number of business failures is expected to rise from an estimated 4,630 this year to over 5,000 in 2010, a new report by business advisors BDO Stoy Hayward claims.
Retail business restructuring partner at BDO Tony Nygate said: “Retailers can expect the worst of the recession to hit in 2010 when rising unemployment and structurally lower consumer credit will dampen prospects. That means retailers will face a particularly tough 2010, with our research predicting over 5,000 retailers will go out of business next year.”
The report covers all retailers of every size from small independents to larger multiples.