Scottish retailers see worst December sales since 1999
Retailers in Scotland experienced the worst December since 1999 last month in terms of retail sales.
Figures from the Scottish Retail Consortium’s SRC-KPMG Retail Sales Monitor showed that total sales in Scotland in December 2011 were 1.6% up on December 2010, when they had increased 3.4%.
Although this was the best performance since July, it was the worst December figure since the survey began in 1999. Like-for-like sales were 0.4% higher than in December 2010, when they had increased 0.7%.
As in the UK results, both like-for-like and total sales improved in December from the previous month. Consumer confidence fell more in Scotland than in the whole of the UK, where sales improved more.
Ian Shearer, Scottish Retail Consortium Director, explained: “December wasn’t the saviour of a consistently harsh year for Scottish retailers. Sales growth revived to its highest since July but this still represented a real terms fall once inflation is allowed for. The Christmas boost was well below both what Scottish retailers hoped for and the UK-wide figures. It came largely from a last-minute surge in the week before Christmas, helped by discounts and the shopping opportunity presented by the Saturday Christmas Eve.
“People did buy food and drink treats but compensated by cutting back on other things. Clothing had a better month, driven by clearances and the eventual turn to colder weather but most other non-food goods struggled.”
Shearer added: “Consumer confidence is lower and falling faster in Scotland than at UK level as fears about incomes, jobs and the wider economy continue. With annual sales growth averaging just 0.8% across 2011, compared with 2.3% in 2010, Scottish retailers’ contribution to jobs and investment is under threat. In this tough climate, it’s even more important that the Government minimises the costs it’s responsible for, including business rates, retail levies and the burden of regulation.”
