Scottish retail encountered a formidable start to the festive season, grappling with storms and the prevailing cost-of-living crisis, marking a less-than-ideal kickoff to retail’s crucial quarter, as noted by the Scottish Retail Consortium (SRC).
SRC Director David Lonsdale highlighted a «significant weakening,» marking the poorest monthly performance since July, with a fourth consecutive month of real terms decline in retail sales value. The downturn affected all categories, particularly impacting non-food, which saw its first decline since May.
While overall sales faced headwinds, specific categories demonstrated resilience. «Lower-priced indulgences,» such as cosmetics and fragrances, saw positive performance, as did the anticipated boost in Wellington boots sales due to extremely wet conditions. Formalwear emerged as a positive outlier, driven by the return of corporate events and preparations for the upcoming party season. However, clothing overall, along with sales of larger-ticket items like white goods and furniture, faced challenges.
In terms of numbers, there was a year-on-year decline of 2.3% when adjusted for inflation. Total sales for the four weeks ending October 28th were up 2.9% compared to the same period a year ago. On a like-for-like basis, Scottish sales increased by 2.8% compared with October 2022. These figures, while positive, fall below both the three-month and 12-month average growth rates.
Total non-food sales experienced a 1% decline in October compared to the same period the previous year, a trend further emphasized when adjusted for the estimated effect of online sales.
David Lonsdale expressed optimism for a temporary downturn, noting consumers may be delaying Christmas-related spending in anticipation of Black Friday discounts. He stressed the need for government support, urging the Chancellor and Finance Secretary to enhance consumer confidence and aid retailers in maintaining affordable prices. Lonsdale emphasized the importance of ruling out a business rate hike, which could impact retailers’ costs and push prices higher for consumers. As Scottish retailers navigate these challenges, a delicate balance between economic support and consumer confidence becomes paramount in the SEO-optimized landscape.
