The Courier & Advertiser (Perth and Perthshire Edition)
Crucial Christmas in store as clouds gather over the retail sector
Figures show fewer people out shopping across Scotland and more store units lying empty
Retailers are desperately hoping for a bumper festive season after the number of shoppers taking to Scotland’s high streets fell for a sixth consecutive month.
The latest Scottish Retail Consortium (SRC)/Springboard report found footfall fell by 3.3% in October.
The slump represented a worsening of the situation over the quarter in which there was an overall average decline in footfall of 2.1%, and was significantly poorer than the 12-month average of -0.2%.
The number of vacant shop units in Scotland has also grown to more than one in 10, the highest level it has been fore more than two years.
SRC director David Lonsdale branded the results as “dreary”, with the decline in shopper numbers not only hitting high streets but also impacting on major shopping centres and out of town retail parks.
He said the situation demanded action.
“With the clock ticking down towards the Chancellor’s UK Budget and the Finance Secretary’s Scottish Budget, retailers will be looking for convincing action to lift consumer spirits at a time when higher inflation and costs are eroding household spending power.
“The industry will also be looking for concrete action to stem the relentless rise in government-inspired cost pressures affecting firms, beginning with the projected 4% in business rates which is on the cards for April and which will only make it even more expensive to operate physical stores.”
Diane Wehrle, marketing and insights director at Springboard, said she hoped Christmas may help lift some of the gloom gathering over the retail sector.
“The signs of the gathering cloud have been evident in footfall trends for a while, with October’s result leading to the longest period of continual decline since November 2015.
“And a drop in footfall during retail trading hours of -7.4% in high streets – alongside daytime drops in footfall of -2% in shopping centres and -1.1% in retail parks – provides definitive evidence of consumers tightening their purse strings.
“It is unsurprising therefore that the vacancy rate in Scotland has risen once again, and at 10.5% it has now returned to the level it was in July 2015.”
Ms Wehrle said it was likely there were more tough times ahead.
“With possibly another two interest rate rises on the horizon, these results suggest that Black Friday, and the subsequent Christmas sales storm, will be typified by consumers battening down the hatches.”
With the clock ticking down towards the Chancellor’s UK Budget and the Finance Secretary’s Scottish Budget, retailers will be looking for convincing action to lift consumer spirits ... DAVID LONSDALE, SCOTTISH RETAIL CONSORTIUM