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Cost-of-living crisis to push more retailers to brink next year, warn experts

THE cost-of-living crisis is set to push more retailers to the brink next year, according to retail experts today.

The warning comes after an increase in retail collapses towards the end of 2022, with high-profile insolvencies such as Joules and Made.com.

Credit insurance specialists at Atradius said there was a jump in claims across retailers and consumer firms over the year, in a signal of growing uncertainty which resulted in others launching re-financings or broad restructurings.

Erin Brookes, managing director and head of retail for Europe at Alvarez & Marsal, said deals by Next to buy the Joules and Made.com brands from administration could point towards further consolidation as smaller firms come under pressure from rising costs.

Over the past year, online retail giants Boohoo and Asos have both seen their shares slide by more than 70 per cent amid a slowdown in demand following the reopening of stores and pressure on budgets.

Ms Brookes added that this Christmas could be invaluable to many retailers as they head into a potential challenging start to 2023, when there is expected to be confirmation of a recession.

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