In recent years, Scotland’s important retail sector has taken a hit in footfall and sales. According to the latest figures compiled by the Scottish Retail Consortium (SRC), retail sales in Scotland took a downturn (0.2%) for October resulting in the first year-on-year decline since the spring of this year. The SRC and Springboard monitor also found the vacancy rate for town centres in Scotland was up to 11.1% in October, which was an increase from 10.8% in July and above the average vacancy rate for the whole of the UK at 9.6%.
In the first half of 2018 there were 58 new store openings in Scotland's main cities and towns, but 107 closures. The shop vacancy rate is at its second highest level in the past seven years and tells us that Scotland’s high streets are not in the rudest of health.
How consumers purchase goods and services has dramatically transformed over the past decade and is a key factor in why Scotland’s high streets have taken a hit in recent times. In January 2008, online purchases accounted for 5% of retail sales. Fast-forward ten years to August 2018, that figure is now 18%. Internet retailing is more popular in the UK than in any other EU country. In the run-up to Christmas, consumers in the UK are expected to spend over £2,000 each - three times as much as consumers in France and Germany - and retailers can prime themselves to obtain a large slice of this spend and attract more customers through the doors.
Businesses have already been adapting to changing consumer behaviour and offering a "retail mix," including an engaging store experience, online offerings and speedy delivery options. Another way in which retailers can increase footfall is by broadening their customer base, particularly around consumer inclusivity. Making shopping more accessible at this busy time of year would be a worthwhile pursuit for all retailers. Introducing regular ‘quiet hours’ for those with sensory needs, improving store signage, increasing mobility around stores and using more inclusive marketing and product photography are just some of the ways stores can improve the customer experience. Shopping centres across Scotland have already taken encouraging steps by introducing ‘quiet hours’ on Sundays, an important step to increase footfall and appeal to a wider range of consumers. The Purple Tuesday campaign is an excellent example of how businesses can make immediate changes to meet the needs of consumers. Ultimately, this is good for business and consumers, but also good for our communities.
Liz Cameron is chief executive of Scottish Chambers of Commerce.
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