UK retail sector expands by 7 percent

The retail industry in the UK has increased over the last 12 months according to new research from Creditsafe, with over 7 percent more active limited companies in the retail sector in operation than at the same point in 2013.

The research shows that in the last year the retail sector has grown by almost 10,000 businesses, with over 146,000 retail operations now active, and that the whole sector is looking positive as only 5.5 percent of the active businesses were rated by Creditsafe as very high risk or high risk.

The report also revealed that Croydon was the top regional centre for retail business growth in the past year, adding that it could expect further expansion with the Westfield and Hammerson’s 1 billion pound redevelopment of Croydon town centre.

Croydon was followed by Manchester and then Birmingham, while Glasgow and Edinburgh were classified as experiencing “limited retail growth” at 23 rd and 44th respectively in the rankings of regional retail expansion. The fact that Scottish locations dominated the top 10 centres of retail decline and low growth in the UK further stresses the divide between English and Scottish retail growth.

Rachel Mainwaring, operations director Creditsafe UK, said: “The last 12 months have seen a significant uplift for the retail sector after a difficult 2013. The health of the retail industry is often taken as a barometer of consumer confidence, so these figures support the argument that people are starting to open their wallets and spend.

“There is however a divergence between the rate of growth in England and Scotland. The rate of expansion in Scotland is far lower on average than in England, which may indicate the referendum had an impact on business confidence and investment in this sector.”