While luxury retailers in the U.K. may be snapping up store space on local high streets, especially in London, the outlook for the rest of the industry is struggling, as retail point-of-sale software lays dormant.

In the first quarter of 2012, the number of British retailers who went out of business increased a staggering 38 percent from the fourth quarter, from 486 companies to 670 companies, Reuters reports.

The increase is part of the double-dip recession manifesting across the nation. This has also been affected by slow wage growth for U.K. workers, an unsteady euro zone and worries about job security.

"Last year was bad but this year is even worse. Retailers are still struggling with rents that they feel are far above the market rate and banks are particularly reluctant to extend credit to struggling retail businesses," Anthony Cork, a partner at the firm, told Reuters.

Many retailers, especially those in London, are hoping the Queen's Diamond Jubilee and the 2012 London Olympics will boost sales.

This entry was posted by Retail Pro on Wednesday, May 30th, 2012 at 2:36 am .