More than 9,000 etailers in financial distress

More than 9,000 etailers are suffering from financial distress proving that it's not just the physical retailers struggling in a tough market.

According to a new report from Begbies Traynor, the number of UK online retailers in financial distress has risen by 65% over the past three years to 9,024.

The number of retailers in financial distress, while a far greater number, appears to have plateaued rising by 1% when compared to the same period last year to 26,930.

Fashion retailers suffering significant financial distress have risen by 21% to 3,355.

Julie Palmer, partner at Begbies Traynor, said she expected 2020 to provide more challenges for etailers, despite the greater certainty regarding the UK's exit from the EU following the General Election.

“Looking to 2020, it seems as if the accelerating numbers of online retailers in distress will continue. The competition online is ferocious, but the rewards for those that succeed – such as Boohoo – are huge. In the New Year, strong leadership will be key. There are some tough decisions to be made and some hefty modernisations to bring forward.

"Even retailers that are performing well will have to keep on their toes. As Ted Baker will attest, 12 months is an awfully long time in retail. In the coming months, many businesses will have to make a decision on whether to stick or twist with investment, innovation and expansion,” Palmer said.