Retailers looking for Budget boost

Scottish retailers are hoping for a Budget boost after sales of non-food items took a hit last month.

Figures from the Scottish Retail Consortium/KPMG survey show total sales were 0.2% lower in September when compared to 2017.

The sector was dragged back by a poor performance from non-food categories, although an increase in food sales was less pronounced than in prior months.

Paul Martin, UK head of retail for KPMG, said: “As we’ve come to expect, food sales increased in September – albeit at a slower rate – while non-food categories performed poorly, in spite of a number of clearance sales and back-toschool promotions.

“End-of-line sales were out of sync with September’s wet weather, meaning fewer purchases for sunnier times.

“However, there was welcome relief for electronics retailers, thanks to a number of highly-anticipated game releases in September.

“The final few months of the year can be a double-edged sword for many retailers, as they need to entice shoppers on Black Friday and in the run-up to Christmas, while avoiding overly generous promotional offers which can add further pressure to already squeezed profit margins.”

Ewan MacDonald-Russell of the SRC said: “We are now seeing the second month of consecutive shop price inflation and it’s likely wider economic pressures will continue to impact on both the industry and our customers.

“Food sales performed very credibly at 3.7%, albeit with inflation driving some of that rise.

“Customers have moved away from the more spontaneous approach of the summer, focusing on more warming meals as the mercury starts to dip. However, non-food sales continue to struggle as cautious consumers stay away from the high street.

“With the UK Government Budget coming later this month, retailers will be hoping the chancellor takes steps to help hard-pressed shops and shoppers alike.

“With both the political and economic environment being so volatile and unpredictable right now, it’s definitely not the time to put up taxes or costs.”

Meanwhile, Scottish packaging group Macfarlane has called on online retailers to review the way they pack their sale items after it found a quarter of goods dispatched were overpacked.

Sales in non-food categories fell last month as the pressure on high streets continued to be felt.