The retail and wholesale industry carries the highest debt burden of any sector at £2.7bn, a report from savings platform Swoop Funding shows.
Based on data from over 50,000 UK businesses, the report breaks down debt by region, sector, business age, and gender. The findings show financial pressures within the retail and wholesale sector despite modest signs of recovery and years of evolution.
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While the retail sector saw annual retail sales volumes rise by 0.7% in 2024 (the first growth since 2021) volumes remain 0.3% below pre-pandemic levels, and many retailers underperformed in the final quarter of 20242.
Swoop Funding claims that this suggests that many retail and wholesale businesses have turned to borrowing not only to manage cash flow gaps, but also to invest in digital transformation and remain competitive in a sector where profit margins continue to shrink.
