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UK retail sector to shrink further

The UK retail sector is to set shrink even further after Blacks Leisure announced it would be leaving the London Stock Exchange.

Blacks was put into administration last week and now it is believed the firm will be bought out by leisure giant JD Sports after the company announced that it was in "advanced talks" to buy the struggling shop.

It has been reported that failures in the retail sector have risen by 11 per cent in the past year with a total of 42 stores placed in administration in 2011. Companies such as HMV and La Senza have admitted disappointing sales even over the usually lucrative Christmas period.

Andy Wade, analyst at Numis Securities who has been charting the changes to the index, told the Financial Times: "These retailers have all experienced structural problems, often with no obvious 'fix' for the core business, at a time of extreme margin compression across the retail sector."ADNFCR-1898-ID-801258998-ADNFCR

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