UK store closures at a record high
15th April 2019.
Business conditions for brick-and-mortar retailers in Britain continue to remain challenging, with new figures suggesting that the number of UK high street shop closures reached record highs last year. 5,883 high street shops closed in 2018, equating to an average of 16 closures a day, according to research from PwC. The annual survey also found that the number of new stores opening across the UK also fell to the lowest level on record, with just 3,372 openings equating to an average of 9 openings a day, or nearly half the level recorded in 2013. Overall, the research recorded a net total of 2,481 shop closures in 2018 – marking a record net fall of 3.6% compared to total losses of just 1,772 stores in 2017, the steepest annual drop since the annual survey began.
6% increase in retail administrations
A number of company voluntary arrangements (CVAs), restructurings and administrations were announced last year as a result of the challenging conditions faced by the retail sector, with many businesses suffering from a combination of rising wages, business rates and rent costs, competition from online sales, and waning confidence amongst both investors and consumers. Data from Deloitte highlights a 6% rise in retail administrations last year, with fashion stores, value retailers and electronics retailers amongst the worst hit. With data for the first quarter of 2019 indicating that shop closure rates remain high, it appears that the decline of high street business is only set to continue. Last week, it was confirmed that Debenhams – Britain’s biggest department store chain – had entered into administration, joining other major retailers including House of Fraser and Toys R Us which have opted for CVAs in recent times.
Businesses urged to prepare for ‘uphill battle’ to survive
Against this backdrop, businesses in the retail sector are advised to monitor their credit management systems vigilantly so as to strengthen their balance sheets. PwC analyst Zelf Hussain notes: “Retail companies looking to survive, let alone flourish, in 2019 face an uphill battle”, adding: “We have already seen several casualties and there will undoubtedly be more.” By making sure that overheads are streamlined and debts and late
Are you owed money by a retailer?
With pressures on the high street it is essential that you stay on top of the credit limits you grant retailers and watch carefully for any late payments.
You can’t just assume your customers can and will pay you, no matter how big their name is.
It is essential to have credit management systems in place to monitor and check your customers credit worthiness.
It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.
See the section below – About CPA.
Are you also at risk of collapsing?
If you are struggling like the above retailers, rather than shutting down, do you realise you may have a hidden source of capital within your business waiting to be activated?
If you trade with other businesses and were often paid late then you could be entitled to significant compensation.
Under little known and underused legislation your business could be due huge amounts in compensation that you didn’t even know about.
That compensation could be the cash rescue your business needed.
How can CPA help?
CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.
We do the work, you receive the cash.
If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.
We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.
We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.
CPA is passionate about late payment
The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.
We are passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.
If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.
As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.
Under little used legislation, you are entitled to compensation for those late payments.
Now you can boost your own cash-flow.
CPA can help unearth the those hidden treasures.
We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.
Yes, CPA can help you boost your business cashflow.
Don’t et your bankers control you, contact CPA today.
About CPA
The Credit Protection Association can help!
Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.
At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.
We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
If you supply to big companies like office outlet or small ones, help us help you identify the risks.
Why use a third party collector?
As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
Over the years we have collected billions in overdue invoices for our customers.
Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
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