By Kristy Dorsey
Scotland’s retailers face “make or break” as they head into the typically strong month of September with sales continuing to struggle relative to the wider UK sector.
Latest figures from the Scottish Retail Consortium (SRC) show the pace of the decline in Scotland continued to slow from the collapse during the height of lockdown. However, with the easing of restrictions lagging that elsewhere in the UK, Scottish retailing remained stuck in negative territory.
The value of sales in July was 8.3 per cent lower than in the same period a year earlier, an improvement on the 18.6% decline recorded in June. Following the move to full lockdown on March 23, retail sales in Scotland plunged by 40.3% in April and 27.6% in May.
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Last month’s 8.3% decline in Scotland contrasts with growth of 3.2% for the UK, which was the second consecutive monthly increase at UK level.
Paul Martin, head of retail at KPMG, said Scotland’s retailers are witnessing “a recovery of sorts, but at a worryingly low pace”.
“September is typically one of the strongest months of the year for Scottish high streets, so there will be a great deal of nervousness as we approach this period with furlough schemes tailing off and local lockdowns and travel restrictions continuing to put people off returning to a degree of normality,” he said.
“The industry is facing an uphill battle for survival. The next few months could be a crucial make-or-break period for many.”
READ MORE: Scottish retailers lose almost £2bn during pandemic
Although some high street stores in Scotland were open throughout July, those in shopping centres, as well as hospitality businesses, were only permitted to open in the second half of the month. Combined with consumer caution in difficult economic conditions, non-food sales fell by 18.1% .
Adjusted for the estimated effect of online shopping, non-food sales were down by 5.2%. Technology, kitchen appliances and other products for the home remained in high demand.
Ewan Macdonald Russell, head of policy at the SRC, said the 3.5% increase in food sales was “actually quite close” to what would be expected in July. Summer party and barbeque food sold well as retailers were only competing with hospitality businesses in the latter half of the month.
“Whilst these figures are a significant improvement on the dire numbers from full lockdown, they are still lower than expected for this time of year,” he added.
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