Thousands of retailers quit to avoid debt

The number of retailers quitting their business doubled in 2023 compared to 2022. Several thousand entrepreneurs close their doors to avoid getting into debt. The shortage on the labor market also causes many problems.

According to INretail, this concerns about 4% of retailers, which is twice as much as in 2022. Retailers no longer see a future and pull the plug on their case. This concerns thousands of entrepreneurs and that is worrying.

In addition, sky-high inflation has also cut. In addition, energy, rental and labor costs rose sharply last year, while turnover remained the same compared to 2022. This while the purchasing costs are also considerably higher. This means that the return is under pressure. The increase in the minimum wage in particular creates additional costs. Add to this that the consumer also spends less.

The number of bankruptcies in the shopping street is also increasing. Figures from Statistics Netherlands show that 1,637 companies have gone bankrupt since the summer. Handyman, Big Bazar and the packaging-free supermarket Pieter Pot recently went to the bottle. The vacancy is quite stable, but the number of stores is decreasing. Homes and catering often replace this.

Shortage major problem
Many entrepreneurs suffer a lot from the unprecedented shortage on the labor market, according to INretail. The Netherlands currently has about 380,000 vacancies that are difficult to fill. That problem is noticeable everywhere. In the end, this even means that many retailers have to close their doors early. They close earlier, open later or even remain closed for certain days due to the staff shortage.

Source: NU.nl
Photo: Shutterstock

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