By Karen Peattie
WARM weather saw food and drink sales perform well last month although non-food sales were mixed, with good news for fashion retailers as shoppers looked to update wardrobes for the summer and disappointment for furniture and homewares where sales dipped compared to last year’s strong performance.
The SRC-KPMG Scottish Retail Sales Monitor, covering the four-week period from July 4-13, revealed that total sales in Scotland increased by 7.4% compared with July 2020, when they decreased by 8.3 per cent year-on-year. This was below the three-month average growth of 35.9% and the 12-month average of 8.4%.
However, on a two-year basis, total retail sales continued to perform below pre-pandemic levels, with sales down 4.4% compared with July 2020 – leading the SRC to warn of a “long winter for Scottish shops” unless sales bounce back during August.
Sales increased by 6.2% year-on-year on a like-for-like basis compared with July 2020, when they decreased by 7.7%. This is below the 3-month average increase of 30.8% and above the 12-month average growth of 7.0%.
Ewan MacDonald-Russell, head of policy and external affairs, Scottish Retail Consortium: “Despite last month’s sunshine there must be worry there are storm clouds ahead for the Scottish retail industry. Footfall to retail destinations, high street vacancies, and now sales have been negative for some time.
“With parts of the supply chain under pressure from rising commodity and haulage costs, the stresses on operational models are only increasing. If there isn’t an August bump in retail sales from the relaxation of restrictions it may be a long winter for Scottish shops.”
Paul Martin, Partner, UK head of retail at KPMG, noted: “While social distancing measures persisted throughout July, the picture improved again for Scottish retailers as rising footfall, enabled or encouraged by the move to Level Zero restrictions, facilitated a sizeable rise in total sales.
“However if we compare current levels to 2019, sales do still remain low – a clear indicator of the impact the pandemic continues to have on retailing operations. Despite the difference against pre-pandemic levels, retail performance in July was encouraging, especially the steep rise in non-food sales.
“Hopefully we’ll see this positive momentum continue throughout the summer as the majority of remaining restrictions are eased, retailers resume normal trading, and consumers feel confident to spend once again.”
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