More retail businesses are failing. Experian's latest insolvency figures show 282 non-food retail business failures from March to May this year - a rise of almost 25 per cent on the same period in 2007.

The food retailing market is faring better, with only a 2.6 per cent increase in failures over the same period.

"Consumer confidence is at an 18-year low and this is having an impact on consumer spending. The squeeze on incomes from rising food and fuel prices is intensifying, house prices are falling and there are signs that the labour market is beginning to turn," says Experian senior economist Matthew Sherwood.