Sharp rise in retail store bankruptcies despite decline in other sectors

The number of Dutch retail businesses that went bankrupt rose sharply from April to June, Statistics Netherlands (CBS) has found. A total of 89 businesses were affected, compared to 66 during the same period a year earlier, the national data center said on Tuesday. Despite the rise in retail bankruptcies, the number of businesses that went bust fell by 7 percent across all economic sectors.

CBS economist Marjolijn Jaarsma said it is difficult to explain the increase in retailers that fell into financial trouble, although competition from online stores does seem to be playing a role. "The bankruptcies are happening across the entire high street, spread across various sectors. For example, you see that clothing retailers are struggling, something that's been going on for some time," she explained.

There were several high profile bankruptcies during the second quarter, including fashion chain Gerry Weber. Home furnishings chains CASA and Rivièra Maison also went bust, among others.

The statistics agency reported the bankruptcy figures in a publication on the retail sector. The research also revealed that turnover in this sector rose by 3.3 percent during the second quarter when compared to the same period in 2024. More goods were also sold, although there were clear differences between different types of stores.

For example, consumer electronics shops saw their revenues decline by almost 11 percent. Online competition, as well as higher prices, also played a role in this, according to Jaarsma. Stores that saw increased revenues included recreational goods retailers, drugstores, and DIY shops.

Online store sales increased significantly by 9.6 percent compared to the previous year. This applies to sellers who offer their products exclusively online. For companies that sell both in-store and online, sales remained virtually unchanged.