The number of UK retailers falling into insolvency from outside the food sector rose 25pc in the three months to the end of May, with out-of-town stores under the most pressure amid concerns over rising fuel prices.

Growing pressure on non-food retailers saw 282 fail in the quarter, according to data company Experian and statistics from the UK's Insolvency Service.

In the food sector, 40 businesses failed, just one more than last year.

The rising incidence of business failures comes as Experian said the number of people visiting out-of-town retailers in June fell 5.8pc against the same period last year, compared with a 1.5pc fall in town centres.

In the broader retail market, the number of people visiting shops last month fell 2.6pc year-on-year, but rose 1pc compared to May.

Matthew Sherwood, an economist at Experian, said he expected trading conditions to deteriorate further amid rising food and fuel costs, falling house prices and "signs the labour market is beginning to turn".

He added: "We forecast a slowdown in retail activity as consumers hold back on making major purchases as they focus on the coming summer holiday season."

News of a fall in custom at out-of-town retailers follows claims from Marks & Spencer chief executive Sir Stuart Rose that rising fuel prices are encouraging shoppers to favour local stores.

Jonathan de Mello, Experian's director of retail consultancy, said: "The reduction in visits to out-of-town centres is significant because they generate higher value purchases."

While out-of-town stores suffer, the number of people visiting retailers' websites continues to grow. UK retailers saw a 6.5pc increase in web traffic in June compared with the same period last year.

There is also evidence that consumers are looking for bargains. McArthurGlen, the UK's biggest operator of designer discount outlets, saw sales rise 3pc in the first half of this year.



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