Retailers hit by austerity

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The number of retail companies hitting financial problems and going into administration increased by 30 per cent in the first quarter of this year.

Dan Butters, partner at Deloitte’s Yorkshire office, said: “It comes as no surprise that the retail sector has been worst affected.

“The sector is heavily reliant on buoyant consumer spending and the increase in VAT and the Government’s austerity measures are undoubtedly hitting the sector hard. In particular, smaller retailers are likely to be feeling the pinch more so than ever, as they often have little grounds to negotiate flexible credit terms with suppliers and may find it difficult to raise funding.”