Is late payment a big problem in the retail sector?

The retail sector is slightly better than the UK average, with 24% of invoices paid late compared to 24% nationally. However, late payment still affects freelancers and suppliers in this sector.

Can I charge interest on late invoices?

Yes. Under the Late Payment of Commercial Debts Act 1998, you can charge statutory interest at 8% plus the Bank of England base rate on any overdue business-to-business invoice. You can also claim fixed compensation of £40 to £100 per invoice. You do not need to include this in your contract for it to apply.

How can I check if a specific company pays on time?

Use the PennyFetch payment checker tool to search over 9,000 large UK companies and see their actual payment record, including average days to pay, percentage of invoices paid late, and whether their payment speed is improving or getting worse.

Industry Data

Late payment in retail

How the UK retail sector compares on payment practices, based on official government data from 153 reporting companies.

Overview

Large retailers have significant buying power and often use it to set long payment terms for their suppliers. Standard terms of 60 or even 90 days are common in retail, and many smaller suppliers accept them because they cannot afford to lose the business.

Key statistics

Avg. days to pay

UK median: 32

Invoices paid late

24%

UK average: 24%

Companies reporting

153

of 9,336 total

Retail companies pay their suppliers in 38 days on average, which is 6 days slower than the UK median of 32 days. 24% of invoices in this sector are paid after the agreed terms.

Slowest payers in retail

These are the retail companies with the highest percentage of invoices paid after the agreed terms, based on their most recent government filing.

Company	Avg. days	% paid late
SHOP DIRECT FINANCE COMPANY LIMITED	59	100%
BUNZL RETAIL & HEALTHCARE SUPPLIES LIMITED	49	92%
LUXOTTICA RETAIL UK LTD	38	92%
C-RETAIL LIMITED	71	88%
SHOP DIRECT HOME SHOPPING LIMITED	53	85%
IDEAL SHOPPING DIRECT LIMITED	61	81%
DKH RETAIL LIMITED	69	80%
REPUBLIC.COM RETAIL LIMITED	66	78%
CHARLIES STORES LIMITED	43	74%
EVANS RETAIL LIMITED	91	70%

Advice for freelancers working in retail

If you supply goods or services to a large retailer, factor their payment terms into your cash flow planning from day one. Do not treat 30-day terms as a guarantee. Check their actual payment data and plan for the realistic timeline. Statutory interest is your legal right if they exceed the agreed terms.

Frequently asked questions

Based on official government data, retail companies take an average of 38 days to pay their suppliers. 24% of invoices in this sector are paid later than the agreed terms.

Related tools and guides

Company payment checker

Look up a specific company to check their payment record.

All industry statistics

Compare late payment across every UK sector.

Late payment interest calculator

Work out what you are owed in interest and compensation.

How to chase an unpaid invoice

Step-by-step guide with email templates.

Data from the UK Government Payment Practices Reporting service. Published under the Open Government Licence v3.0. Industry classification and analysis by PennyFetch. This page is for informational purposes and does not constitute financial or legal advice.

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