The Courier & Advertiser (Fife Edition)
Retailers ‘fight for survival’
Scotland’s retailers will be “fighting for su r v i v a l and recovery” over the next few months as the challenges facing the sector show no signs of abating, according to a new report.
September was the eighth month in a row of declining retail sales in Scotland, with total sales last mo n t h down 6% compared with the same period a year earlier.
When adjusted for deflation the decrease was 4.4%, the Scottish Retail Consortium (SRC)-KPMG Scottish Retail Sales Monitor indicated.
Fo o d sales grew in September but non-food and fashion and footwear retailers suffered a month of “woeful performance”.
Ewan MacDona ld - Russell, head of policy and external affairs at the Scottish Retail Consortium, said: “Another month of d isappo int ing sa les confirms Scottish retail is nowhere near returning to growth.
“White goods, household essentials and electronics continue to perform well, with televisions and gaming boosted by new releases.
“Conversely, fashion, footwear and beauty products continue to perform p o o r l y, with customers only buying necessary ra t h e r than indulgent products.
“T here is also some evidence consumers are a lready turn ing to Christmas shopping – presumably to avoid queuing outdoors in the depths of the Scottish winter.
“Overall, the Scottish retail industry is in fragile condition heading into the golden trading quarter. There are severe headwinds ahead.”
Figures indicated total food sales increased 3.7% last month compared to September 2019, when they had increased by 2.2% on 2018.
Total non- food sales decreased by 14.2% in September compared to September 2019, when they had decreased by 4% on the previous year.
Paul Martin, head of retail at KPMG UK, said: “As we enter the crucial ‘golden quarter’ period – when many retailers make the majority of their revenue – Scotland ’s retailers will be fighting for survival and recovery.
“The retail landscape has changed massively and with key events like Black Friday on the horizon, the focus will be on learnings from recent months, reduc ing costs and implementing innovative ideas to drive up demand and conversion rates.”