The number of UK retailers going into administration increased for the first time in five years during 2017 as falling consumer confidence and a drop in consumer spending start to bite.

According to new figures from Deloitte, 118 retailers went into administration during 2017, up 28% from 92 in 2016.

There was a significant increase (55%) in the number of large multi-site retailers that became insolvent last year, the analysis shows. Those administrations with more than ten stores rose from 11 in 2016 to 17 in 2017.

They included budget fashion chain Store Twenty One, which collapsed with the closure of 122 stores and the loss of 900 jobs last July.

"We have seen a significant increase in retail insolvencies in the last 12 months including some well-known names," said Dan Butters, restructuring services partner at Deloitte.

He added that insolvencies in higher value categories, such as furniture, have implications for retail sub-sectors with a lower price point – like fashion and footwear – which typically take longer to feel the impact of reduced consumer spending.

"In January 2017 we highlighted five key cost pressures for retailers, namely the impact of the National Living Wage, sterling devaluation, rates increases, commodity price increases and pension funding. These cost pressures will remain relevant for UK retailers as we move into 2018.

"Successful retailers over the coming months are likely to be those which have already proactively addressed the cost challenges alongside focused pricing and sourcing strategies to maximise margins.

"We also expect online retailers to continue to thrive, driven by two factors, their clear cost advantage against traditional physical retailers and the continued use of sophisticated data analytics to target consumers directly."

However, the findings come after two sets of figures published in the UK this week point to faster growth in spending on clothing than on many other items in December, especially online.

UK spending on clothing robust in December