More than 400 retailers are likely to go into insolvencies over next four months, predicts Experian, causing further upheaval in the UK’s economy. In spite of the heavy rush of Christmas shoppers in the last week, retail footfall tumbled in December.

According to Experian’s forecasts 440 retailers in the UK would collapse in next 4 months compared to 367 which collapsed during same period in 2008. The data specialist is still painting a grim picture for 2010 when it expects a further increase of 20% to 1,400 in retail insolvencies.

Experian’s data reveals a 3.1% fall in visits to shops in December 2008 compared with 2007, despite 12.8% increase in last week on account of massive discounting at the cost of retail margins.

The grim outlook by Experian is based on Pricewaterhouse Coopers’s revelation that 42% of UK consumers would be spending much less in January 2009 than what they spent in January 2008. According to accounting firm’s analysis 30% of are apprehensive about their paying capacity for future debts while 16% are struggling hard to repay current loans.

One in 10 shops would remain empty in 2009 as per estimates by Experian, while high streets in smaller towns would be still bigger sufferers. Present percentage of vacant units is 7.

According to D’Mellohigh scale retail failures would adversely impact revenues generated by high street, including revenues paid to local authorities and investors’ rent yields.