A KPMG survey recorded 1,357 warnings in the second quarter compared with 1,491 in the previous quarter. But despite overall improvement, the survey suggested that the retail sector was finding conditions tougher with a 31% increase in warnings year-on-year.
Philip Davidson, head of KPMG Restructuring commented: ‘These figures are showing that pressures in the hardest hit sectors such as manufacturing and building and construction, are easing off, which is good news for the economy. However, a significant increase in the number of corporate warnings experienced in the retail sector compared to this time last year provides cause for concern.
‘Whilst we are actually seeing sales growth in the retail sector, some retailers are having to offer substantial discounts in order to achieve this, particularly in the area of large, one-off big ticket purchases for the home. With summer sales now drawing to a close, the next quarter’s results will be fundamental in establishing the true picture of the health of the UK retail sector.’
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