Large companies, including supermarkets, have become more resilient, while small retailers face some of the worst risks of failure amid a continuing consumer spending crunch and rising rental and mortgage costs.
“The cost of rent is higher in Victoria and NSW, which is putting more pressure on households and family budgets in those states, reducing their ability to spend, as well as affecting the rent of businesses operating in those states,” Hasseldine said. Lower levels of government support for businesses and fewer amnesties from lenders also played a part, he said.
Businesses in sectors including food services and accommodation are especially at risk, Hasseldine said. “Financial services and insurance certainly are seen much more as an essential service to most households, compared to going out for a Sunday breakfast,” he said.