Retailers ‘must rethink to survive’

Deloitte research showed that the number of retailers falling into administration increased by 15 per cent over the last year.

Paul Feechan, consumer business partner at Deloitte in Yorkshire, said: “To remain competitive, some retailers will need to rethink their business models to be nimble and adaptable to changing consumer trends.

“A fast-changing retail environment will require certain businesses to reassess their store portfolios, not as a matter of choice, but to survive.”

Deloitte said that 69 retailers went into administration in the first quarter of 2012, compared to 60 during the same quarter last year.

Dan Butters, restructuring services partner in Yorkshire, said: “A significant trigger in a number of recent administrations is that many retailers have too many marginal stores.”

The overall number of administrations, excluding retailers, fell by 10 per cent year on year.