Poor October prompts concern for Scottish retail sales ahead of festive season
The SRC-KPMG Scottish Retail Sales Monitor has shown that Scottish sales fell by 1.3% in October compared with the same month last year as concerns about the economy led to a reduction in consumer spending.
After taking account shop price inflation, October total sales were down 2.8% in real terms. Like-for-like sales fell by 2.8%.
Total food sales were 2.3% up on October 2011 as shoppers stocked up on Christmas goods and comfort food during the cold weather. However non-food sales fell by 4.7% although clothing and footwear sales continued to perform well.
Sales in Scotland tracked a similar trend to the UK, with a slowdown in October offsetting the September acceleration.
Never Miss a Retail Update!David McCorquodale, head of retail for KPMG, said the October sales figures sent a worrying signal for retailers in Scotland ahead of the festive season.
Excluding April, October saw the biggest total sales decline since January and, on a like-for-like basis, since May 2011.
McCorquodale added: “The recession may officially be over, but it will take a little longer for consumers to feel they can spend freely again. Retailers are holding less stock than a year ago and may choose to be cautious with pre-Christmas sales in order to protect margins.
“However, the disappointing sales figures for October indicate that winning a share of the Christmas wallet will be just as competitive over the next six weeks as it was last year.”
Fiona Moriarty, director of the Scottish Retail Consortium, said: “This really wasn’t the result retailers wanted. September’s modest sales boost offered some cause for cautious optimism, but continuing concerns about the economy led many customers to batten down the hatches again in October.
“With consumer confidence at a six-month low, hopes of sales picking up in the run-up to Christmas will hinge on retailers reading the market closely; that means offering customers opportunities for seasonal spending at competitive prices.”
