More logistics firms and retail businesses are failing than are being launched, research from parcel delivery expert Parcelhero has revealed.
Using data from the Office of National Statistics’s report Business Demography, Parcelhero revealed that 10,595 transportation and storage sector firms, including couriers and postal companies, were founded in the first half of this year but 13,150 failed – leaving a net loss of 2,555 companies.
Likewise 13,390 new retail sector companies were created in the first half of 2024 but 14,500 retailers shut down - representing a net loss of 1,110 retail businesses.
David Jinks, Parcelhero head of consumer research, said: “Over a thousand more retailers have ’died’ than been ’born’ during the first half of this year and over two-and-a-half thousand more transportation and storage companies have failed than been created.
“These figures are even more alarming when we compare them to the same period in 2019, before the UK was hit by the pandemic. In the first half of 2019, 17,670 retailers were born. That’s 4,280 more new retailers registered than in the first half of this year. Likewise, 15,325 transportation & storage companies were born in the first six months of 2019, which was 4,730 more than this year.
“It also looks like far fewer companies failed in the first half of 2019 than this year. A total of 13,885 retailers failed in the first half of 2019, which was 615 fewer than in 2024. Similarly, 10,560 transportation & storage firms died in the first six months of 2019, which was 2,590 fewer than the first half of this year.
“It does look as if both retailers and their transportation and storage partners are suffering from chronic long Covid. The health of both sectors seems considerably impaired compared to before the pandemic.”
Jinks pointed to a continuing lack of consumer confidence, post-Covid, as a key factor, with consumers suffering from reduced income during the lockdown periods, the impact of the war in Ukraine and rocketing inflation, resulting in the cost of living crisis.
He added: “Now the election is out of the way and inflation continues to fall, will consumers choose to believe that things can only get better under the new government? Or will consumer sentiment continue to remain cautious as everyone waits to see how the economy fares?
“One certainty is that it will be those retailers with strong in-store and online sales that will ultimately triumph in a post-Covid world.”
