Bankruptcies in the retail sector dropped by a quarter in last three months of 2024

The number of bankruptcies in the retail sector dropped by almost a quarter in the last three months of last year. This was revealed due to data published by Statistics Netherlands on Friday. The statistics agency reported that 90 companies were declared bankrupt in the fourth quarter compared to the previous year when 117 companies were declared bankrupt.

These bankrupt stores are nine percent of the total bankruptcies in the Netherlands, which increased by 14 percent during that period. The number of bankruptcies in the retail sector reached its peak in the last quarter of 2023, with 117 bankruptcies.

Several well-known store chains have gone bankrupt in the last few months. These include, Blokker, Big Bazar, Bristol, and BCC.

Despite the decrease, retail store owners are more downcast regarding the economic climate at the start of this year. Almost 10 percent stated that they expect the circumstances to worsen in the first quarter. They are more pessimistic than the average Dutch entrepreneur, according to Statistics Netherlands.

The statistics agency also announced the turnover figures for the retail sector. Dutch store owners saw their revenues rise by 1.9 percent in the October to December period.

Food and luxury goods companies achieved 2.7 percent less turnover than in the same period in 2023. Supermarkets saw their revenues fall by 4 percent. The turnover of specialty shops, such as butchers and cheese shops, increased by 6.1 percent.

Companies that sell nonfood products had an increase in revenue of 4.4 percent during the last quarter. This was mainly due to the increase in sales for DIY, kitchen, and floor businesses. Stores selling furniture and lighting noted a decrease in turnover.

The online turnover increased at the end of last year. Especially stores that exclusively sell products online saw their turnover increase by over nine percent. Business owners with online and physical stores saw an increase in turnover of 2.3 percent compared to last year.