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Scottish retail sales fall in September

Retail sales in Scotland fell by 2.9% year-on-year in September to mark the weakest performance since records began in 1999, excluding Easter distortions. The figures released… View Article

GENERAL MERCHANDISE NEWS

Scottish retail sales fall in September

Retail sales in Scotland fell by 2.9% year-on-year in September to mark the weakest performance since records began in 1999, excluding Easter distortions.

The figures released by the Scottish Retail Consortium and KPMG in their monthly sales monitor also show that like-for-like sales decreased by 4.2%.

Total food sales were 2.4% down on September 2013.  Meanwhile, total non-food sales dropped by 3.3%.

The SRC said September was the first time non-food has underperformed food sales since December 2013.

David Martin, head of policy and external affairs at the Scottish Retail Consortium, said: “September was a challenging month for retailers with a combination of factors contributing to the weakest sales performance since January 1999, excluding Easter distortions.

“Despite improved levels of footfall due to the Ryder Cup and other events demand remained weak for fashion items particularly boots and coats. The intense competition in the grocery market, whilst benefiting Scottish consumers through lower prices, continued to have an impact on sales.”

The gap between the three-month average total sales growth in the UK and Scotland remained in line with the narrowing seen in August. It stands at -1.3% in Scotland against -3.0% in the UK.

David McCorquodale, head of retail at KPMG, said: “Whilst this month’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.

“There’s no denying that the continued decline in food sales is reflected in the challenges facing the grocery sector up and down the UK.”

He continued: “Fashion and footwear retailers suffered in the rest of the UK from warm weather but Scotland’s worse performance was probably exaggerated by other distractions.

“The referendum is behind us and some uncertainties out of the way. The focus for the retail sector is now on the two months leading to Christmas. Weather will play its part but also the investment in omni-channel systems and carefully planned seasonal campaigns will determine the success of the coming weeks.”

 

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