The cost-of-living crisis and elevated interest rates are causing more retailers to go out of business. The National Retail Association is advocating for support for small and medium-sized businesses in the upcoming federal budget. Insolvencies in the retail sector have more than doubled in the past two years, with 502 retail businesses entering administration this financial year. Tight household budgets are also impacting smaller retailers, including second-hand and consignment stores.
More retailers are going out of business as consumers shut their wallets in response to elevated interest rates and the higher cost of living. The National Retail Association is pushing for support for small and medium-sized businesses in next month's federal budget . More retailers are shutting up shop for good as the cost-of-living crisis cripples household spending, with insolvencies in the retail sector more than doubling in the past two years.
Data from ASIC shows 502 retail businesses have entered administration so far this financial year, compared to 193 businesses during the same period in 2022, with low-cost jewellery and accessories chain Colette the latest casualty after its parent company Marquee went into voluntary administration last week. It follows a string of high-profile businesses collapsing, including vacuum cleaner retailer Godfreys, and fashion and swimwear chain Tigerlily entering administration for the second time in March. Tight household budgets are also impacting smaller retailers, including second-hand and consignment stores which have noticed customers are becoming more conservative with their cash. "It's a bit of a scary time to be in retail right now," said Kirsta Hawkins, the founder and CEO of Melbourne-based consignment store Mutual Muse."People just don't have a lot of disposable income these days. There's a lot of expenses, so I think people are just tightening up where they can, and clothing is one of those thing
Retail Consumers Spending Interest Rates Cost Of Living Insolvencies National Retail Association Small Businesses Medium-Sized Businesses Federal Budget Household Budgets Second-Hand Stores Consignment Stores
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