Total Scottish retail sales in September were up 0.8 percent on September 2010, when they had increased 2.3 percent, according to recent data released by the Scottish Retail Consortium. Like-for-like sales were 0.6 percent lower than a year ago, when they had fallen 0.4 percent.
Food sales growth was similar to that in August. Non-food sales improved a little but remained tough. Homewares showed a modest uplift but clothing sales were hit by the unseasonably warm end to the month. Big-ticket purchases were largely deal-driven, hit by fragile consumer confidence.
As in the UK, both like-for-like and total sales were less bad than in August. But consumer confidence remained very fragile, continuing to show a weaker trend than in the UK as a whole.
Ian Shearer, Scottish Retail Consortium Director, said:
“A slight improvement is better than no improvement but fundamentally the tough times continue for many customers and retailers.
“Total spending was just up on a year ago – better than August's fall – but growth is well below inflation meaning sales volumes are down. With food sales growth hardly changed, the improvement was chiefly found in non-food retailing.
“Non-food sales were up on a year ago for the first time since Easter, but only just. Back-to-college items and other small homewares and electricals did better but the modest gains were not universal. Clothing and footwear sales fell because, although Scotland didn't have a prolonged heatwave, the lack of cold weather meant people had little interest in winter ranges.
“Generally, people are still confining their spending to basic needs.”
David McCorquodale, Head of Retail in Scotland, KPMG, said:
“While the recurring theme of like-for-like sales being down in Scotland against last year has continued with a fall of 0.6 per cent in September, the total sales figure for the month rose by 0.8 per cent.
“Within the breakdown of the negative like-for-like sales, we see the continued reduction in volumes of food and drink sales, the continued deferral of spending on big-ticket items and the general caution of the Scottish consumer after the holiday break. The warmer spell of weather will also have pushed back autumn purchases.
“The total sales uplift continues to be boosted by the increase in VAT from last year and general inflation levels. Given that both those items are each greater than the 0.8 per cent rise, then in real terms we are again witnessing continued reductions in volumes on the high street.
“With the last big quarterly rent cheque before Christmas having been paid and many Christmas orders placed, the retail sector now faces a critical period. Many promotions and sales days will occur between now and Christmas but retail chiefs will also be hoping that consumers manage to throw a little caution aside in the coming weeks and that the weather does not play as key a role as it did last year.”
