Scottish retail sales creep up in November as shoppers remain cautious
Retailers in Scotland saw a slight increase in total sales last month as shoppers remained cautious about their Christmas spending,
Figures released by the Scottish Retail Consortium and KPMG show that the total value of Scottish retail sales increased by 1.6% year-on-year in November, compared to growth of 2.1% in October. Like-for-like sales edged down 0.6%.
While total food sales rose 2.3% on November 2012, non-food sales increased by 1.1% as the clothing and footwear category put in its strongest performance since July.
November total sales growth was lower in Scotland than in the UK but the three-month average for food remained higher than for the UK as a whole.
Never Miss a Retail Update!David Martin, SRC head of policy, said: “November’s figures strengthen the sense that many of us are still cautious and holding off on much of our seasonal spending until Christmas gets closer.
“After a subdued showing earlier in the Autumn, fashion’s fortunes were reversed by growing demand for warm clothing and boots, making it the month’s best performing category.”
Martin noted that much of the growth in the non-food category was driven by customers responding well to the deals and discounts offered by retailers in the run-up to Christmas.
He said the slight slowdown in food sales compared to October reflected lower inflation rates and a general trend that many shoppers were focusing on making savings and buying on promotion.
Martin added: “Overall, this is an acceptable but unexceptional result, broadly in line with the annual and quarterly averages for growth, which suggests a slow but steady start to festive spending. Retailers will be pinning their hopes on momentum picking up as we enter the last few weeks before the big day.”
David McCorquodale, head of retail at KPMG, said: “Scottish consumers are stepping into Christmas with caution but from a position of greater confidence than last year. As we enter the final lap in the run up to Christmas, we can take heart from the fact total sales in Scotland grew again in 2013. At this stage last year we were used to recording negative total sales performance, particularly in the non-food segments. This year, the 12 month averages of food and non-food sales are both positive.”
He added: “Despite consumers remaining cash-strapped from the longest recession on record, signs are that this Christmas will be better than last year and that those retailers who have invested smartly in their multi-channel capabilities will grab the share of it from those who haven’t. With Christmas falling on a Wednesday this year, the High Street still has extra shopping days to benefit when internet purchases can’t promise delivery before Santa.”
