THE value of Scottish retail sales fell in September at the sharpest year-on-year pace since records began in 1999, excluding distortions related to the timing of Easter, an industry survey has revealed.
People's strong engagement with the independence referendum, unseasonably warm weather, and continued weakness of food sales amid the supermarket price war were cited as key factors.
September saw a big influx of visitors as The Ryder Cup was held at Gleneagles, but this proved insufficient to prevent the Scottish retail sector from suffering a miserable month.
The survey, published today by the Scottish Retail Consortium, showed that the value of retail sales north of the Border in September was down 2.9 per cent on the same month of last year.
The value of food sales in Scotland was down 2.4 per cent year-on-year in September. And non-food sales last month were down 3.3 per cent on September last year.
David Martin, head of policy and external affairs at the SRC, highlighted the fact that the year-on-year movement in Scottish retail sales value in September had been the worst since comparable records began in January 1999, excluding distortions over the years relating to the timing of Easter.
Edinburgh-based David McCorquodale, head of SRC survey sponsor and accountancy firm KPMG's UK retail sector practice, said: "A nation gripped by politics and blessed with unseasonably warm weather shunned the high street in September. There can be little doubt that the engagement of the country in the referendum debate and the uncertainty surrounding the outcome of the contest cast a shadow over the spending of the Scottish consumer in the first half of the month and impacted the value of sales, despite the high footfall experienced by Scotland's high streets.
"The shadow cast by the September sunshine also affected fashion and footwear retailers looking to move autumn collections."
Mr McCorquodale declared that there was no denying the continued decline in food sales in Scotland was reflected in the challenges facing the grocery sector around the UK.
However, he added: "Whilst [September's] sales figures set some weakest performance records, I see this as more of a disappointment for retailers battling against circumstances, rather than a trend."
The latest batch of weak Scottish retail sales figures comes at a time when real incomes, which have been falling for years, continue to shrink.
The retail sales figures for Scotland in September were, again, significantly poorer than those for the UK as a whole.
Figures published earlier this month by the British Retail Consortium showed that the value of UK retail sales in September was down by 0.8 per cent on the same month of last year. And this marked a significant deterioration, with UK retail sales value having been up by 2.7 per cent year-on-year in August.
Scottish retail sales value in August had been down by 0.3 per cent on the same month of last year.
SRC director David Lonsdale recently cited stronger economic growth and a sharper rise in house prices in other parts of the UK, notably London and south-east England, as possible reasons for the weaker retail sales performance in Scotland.
Commenting on the September sales figures, Mr Martin said: "Despite improved levels of footfall due to the Ryder Cup and other events, demand remained weak for fashion items, particularly boots and coats."
He added: "The intense competition in the grocery market, whilst benefiting Scottish consumers through lower prices, continued to have an impact on sales."
Mr McCorquodale noted that the retail sector was now focused on the two months leading up to Christmas.
While citing weather as a factor which would influence the sector's performance, he highlighted his view that much would depend on how confident consumers were, and how secure people felt in their jobs.
Mr Martin noted that retailers had begun their search for seasonal staff.
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