The UK high street is in turmoil today, with the announcement of two significant retail brands entering administration.
One of the UK’s largest toy retailers, Toys “R” Us, which operated 105 stores across the country, has collapsed following an unsuccessful search for a buyer, putting 3,000 retail jobs at risk. Adding to this, Maplin has also announced that it has gone into administration after talks with buyers failed to secure a sale. Maplin, which will continue to trade through the process, is one of the UK’s biggest electronics retailers, with more than 200 stores and 2,300 staff.
Trading conditions on the UK’s high streets are becoming increasingly tough. More and more, consumers are turning to online retailers such as Amazon, which is leaving many businesses struggling to keep afloat. What’s more, business rates, a spike in inflation, the national living wage, and the apprenticeship levy, combined with the fall in the value of the pound following the Brexit vote, have all significantly impacted retailers.
Earlier this month, Rhian Murphy, a senior statistician at the UK’s Office for National Statistics, said: “Retail sales growth was broadly flat at the beginning of the New Year with the longer term picture showing a continued slowdown in the sector. This can partly be attributed to a background of generally rising prices.”
With an increased number of retail businesses at risk of becoming insolvent, business owners must work hard to win customer loyalty, adapt to the ever-changing customer demands, increase productivity and strengthen their market position.
At Beavis Morgan, our specialist advisers work with a number of retail businesses, helping them with strategic planning, system implementation, business turnaround and improving business performance for the future.
We are available to structure your business with cashflow and profit forecasting to measure performance and maximise opportunities.
For further information about how we can help you and your retail business, contact Steve Govey or your usual Beavis Morgan Partner.
If you have any concerns about the financial position of your retail business, speak to our experts at BM Advisory – the sooner advice is taken, the greater the range of options that could be available to you to resolve any issues and get your business back on the right track.
Contact Andy Pear or Mike Solomons of BM Advisory for more information and an initial free consultation.