THE British Retail Consortium warned yesterday that after zero growth in 2011 and a disappointing Christmas, the new year is seeing a spate of retailers going into administration, forcing a lot of people, particularly under 24-year-olds, into unemployment.
Sarah Cordey, a spokesperson from the British Retail Consortium, told News Line: ‘Our final figures will not be out until January 10th, however what is happening is that a lot of retailers are having to find three months rent up front.
‘Traditionally rents are paid quarterly which we think is unnecessary and old fashioned.
‘2011 was a difficult year for the retail sector with virtually zero growth.
‘Christmas shopping started very late and there was an exceptionally high level of promotional and discount activity that clearly eats into profit margins.
‘So after a difficult year and a Christmas that failed to live up to expectations, sadly some firms find themselves unable to continue.
‘They are in a very difficult position and the worry is jobs.
‘Retail employs nearly three million people and around a third are under 24 years old.
‘This is the age group that really need jobs at the moment with over a million out of work.
‘Under 24 year olds are facing some of the biggest challenges in the jobs market.
‘There has been a spate of retailers calling in the administrators.
‘When a retailer fails, it not only leaves a gap on the high street but reduces the number of jobs, pushing people back into unemployment.’