The number of bankruptcies will drop further in 2018 to a new low point. Especially for the retail trade, where once again a decrease of ten percent is expected, the outlook seems favorable. However, there are differences per sector, according to ABN AMRO bank in its new prognosis.
For the retail trade, the decrease, according to the bank is due to consumer confidence, that did not directly lead to higher consumer spending after the crisis . As a result of this, the decrease in number of bankruptcies comes to an end only later on. Consumer confidence is on the highest level since 2001 and leads, also this year, to an increase in consumer spending. However, due to fierce competition within the sector, tight margins also may become a possible problem.
The uplifting economy is mentioned as the most important reason for the last time the bankruptcy goes. In total, 3290 companies and institutions went bankrupt in 2017, a decrease from 20 percent compared to a year earlier. Compared to 2013, the number of bankruptcies was about 61 percent lower.
The number of bankrupt one-man businesses is historically low and decreased with 6.2 percent in 2017. ABN AMRO does make the comment that these figures are misleading, today’s large part of the one-man businesses are self-employed without their own shop of business. When such a company ceases to exist, this is more often done by means of a cancellation without there being a bankruptcy.
There are also clear differences per sector. In the clothing retail sector, shops show growth again after years of shrinkage. In 2018, turnover is expected to increase by 2.5%. However, much of this growth is achieved online and the sector remains vulnerable to weather influences (Statistics Netherlands, 2017).