The Olympic games is giving our economy a well needed boost but two days in to them is the news that retail insolvencies are up by 10% this quarter. Many other retailers are in sale trying to offload the summer season merchandise that just hasn't sold due to the bad weather we've had for months, June and April being the wettest since records began. With well know high street names failing like Clinton Cards, Game, Habitat, Peacocks, and now Julian Graves it's all rather worrying.
PricewaterhouseCooper's figures show that insolvency numbers for retailers is 426 in the second quarter of 2012 compared to just 386 in the previous year. Reasons for some High St failures, apart from the bad weather, are said to be due to retailers operating too many stores and online sales having an impact as people look for better bargains.
However it's not all doom and gloom as other retailers are announcing their profits are up, such as William Hill and Harrods up by 15%, John Lewis at record profits, along with pound shops and coffee brands which are in expansion and opening new sites.
More insolvencies are expected as the remainder of 2012 is predicted to be particularly tough for the retail sector.