February 24th, 2012

Growing number of Hungarian retailers close up shop within a year of opening

By
abc

A growing number of retailers in Hungary are being forced to close up shop as they struggle to stay afloat in the face of creeping consumer prices and waning demand, a fresh study by Dun & Bradstreet Hungária shows. While the number of retail businesses operating rose 4% last year, and accounted for 4% of all businesses in Hungary, now 4% of them are shutting are closing up shop within a year, compared to 3.26% in 2010.

The number of closures due to involuntary bankruptcies in the sector jumped nearly a third to almost 2,500 in 2011, from under 2,000 a year earlier, while voluntary liquidations surged over 60% – to 2,800 – during the same period.

The average period of late payment among retail businesses was 19 days in 2011, up from 18 days 2010. This compares to a respective 23.5 days and 18 days in the entire economy.

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Comments [2]
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  1. frank says:
    February 25, 2012 at 7:14 am

    Its just like hungarian online business which are also having a touch time, like szallas.hu or http://www.onlyrooms.com

  2. Tony Manero says:
    February 27, 2012 at 12:45 pm

    My own casual observance backs up this report. In the 9th where i live, many small retailers setup and close within 6 months. Most don’t have great business ideas (peksegs, ABCs,…) but at least they take a chance.