"Hospitality, retail and leisure businesses had hoped for a stronger start to the year, yet many continue to grapple with rising costs, subdued consumer spending and increasingly limited headroom within already thin operating margins. Hospitality, leisure, property and construction businesses tend to feel the strain most acutely at this time of year, as winter weather and shorter daylight hours dampen activity and delay projects."
"Retailers, meanwhile, are often forced into heavy discounting to clear unsold Christmas stock, as fragile demand and persistent cost inflation further erode profitability. The latest insolvency figures underline that these challenges extend well beyond a typical post-Christmas slowdown. Instead, they point to deeper pressures that continue to test the resilience of the UK's consumer-facing sectors and require urgent policy attention."
Company insolvencies rose to 1,744 in January 2026, a 4% increase from December 2025. Wholesale, retail and hospitality sectors accounted for 30% of insolvencies in the year to January 2026, affecting 7,081 companies. Subdued post-Christmas demand and persistent cost challenges weighed on the UK high street at the start of the year. Pressures facing high street and leisure operators are increasingly structural rather than seasonal, driven by rising costs, fragile consumer spending and limited margin headroom. Hospitality, leisure, property and construction commonly feel winter-related strain, while retailers resort to heavy discounting to clear unsold Christmas stock. A recently announced pub rescue package offers targeted relief, but broader government support remains limited.
Read at London Business News | Londonlovesbusiness.com
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