More shoppers return to stores in April but questions remain on spending

THE number of shoppers visiting retail outlets in Scotland improved between March and April, providing some signs of promise despite looming concern about the amount of money consumers are actually spending.

Latest data out today from the Scottish Retail Consortium (SRC) shows that compared to the same period in 2019, footfall fell by 14.8 per cent in April. That was a 6.3 percentage point improvement on March but was worse than April’s UK average decline of 13.1%.

Comparative figures for 2019, rather than last year, are being used by the SRC to show retail sales relative to the pre-pandemic period.

On that basis, shopping centre footfall in Scotland declined by 20% in April, a significant improvement on the fall of 32% in March. Footfall in Glasgow’s city centre was down by 11.6%, which again was better than in March.

The SRC said the easing of Covid restrictions and the return of commuters and tourists led to the “noticeable” uplift in people visiting cities and shopping centres. But though the industry will welcome these figures, they don’t capture the full range of consumer behaviour.

“At face value, this is all positive and welcome news for retailers as Scottish footfall recovery continues, however, it comes with a caveat that this only captures store visits, rather than reflecting what’s being rung through the tills,” said Andy Sumpter, consultant with retail analysts Sensormatic Solutions.

“As shoppers feel the pinch of the rising cost-of-living and face downward pressure on their disposable incomes, conversions and basket sizes are being reduced, so retailers – especially non-discounters or value brands – will need to work even harder to earn a share of wallet and shopper loyalty in-store.”

The value of Scottish retail sales slightly topped their pre-pandemic levels in March, according to latest data from the SRC, but a significant proportion of this was driven by higher prices in the shops. Without the impact of inflation, the value of sales would have declined.

SRC director David Lonsdale welcomed the figures but added that inflation’s squeeze on consumers’ disposable incomes remains a concern.

“Of course, one swallow does not make a summer, and it remains true that visits to stores are still somewhat shy of pre-pandemic levels,” he said. “However, several indicators crucial to the health of Scotland’s retail industry – retail sales, shop vacancies and now shopper footfall – are each beginning to point in a more favourable direction.

“The challenge will be to sustain this improvement in the months ahead as economic headwinds affecting both consumer and business sentiment and spending power exert their grip.”