‘Troubled times’ for shops as customers fall

Published on Monday 20 February 2012 00:00

THE number of customers in Scottish stores plummeted compared to the rest of the UK, where shops enjoyed an unexpected rise, according to a new report that warns of “troubled times” ahead for Scotland.

The Scottish Retail Consortium (SRC) has reported an 8.5 per cent drop in footfall in the three months to January 2012, which included the peak Christmas period, compared with the same three months to January 2011.

Ministers have also been warned that new business taxes announced in the budget will have a further “damaging” impact. Scotland was the hardest-hit part of Britain, with footfall “considerably worse” than the 1.8 per cent rise across the rest of the UK.

However, according to the SRC there was an “encouraging” decrease in empty stores in Scotland, with January vacancies falling 0.5 per cent from October to 9.1 per cent. The figures come five days after the SRC’s “worrying” retail sales monitor recorded the biggest fall in sales in Scottish stores in more than a decade.

SRC director Ian Shearer said: “These results are further evidence of the troubled times for Scottish retail. Even Christmas failed to bring shoppers out in Scotland.”

He said the drop in footfall “sadly mirrors the worrying monthly sales figures” in the retail sales monitor.

He added: “Consumer confidence is unfortunately weaker in Scotland than UK-wide and that’s hit consumer spending. Concerns about personal finances and job security are biting, putting people off shopping with no sign yet that a turnaround is coming.

“With the Scottish Government reviewing town centres this year, the factors affecting the retail sector and its massive contribution to regeneration and employment need to be clearly understood.

“April’s above-inflation rises in business rates (up 5.6 per cent) will have a further damaging impact and exemplify the wrong approach.”

Diane Wehrle, research director at customer counting service Springboard, said the UK picture was “positive news considering some key players have recently gone into administration and there’s been a wave of profit loss announcements”.

She said: “For the first time in five years, December saw footfall up on the previous year as savvy shoppers took advantage of heavy retailer discounting.”

A Scottish Government spokeswoman said the more “robust” Retail Sales Index shows “the volume and value of retail sales increased in the fourth quarter of 2011”, with Scottish volume increasing by 0.7 per cent over 2011 against 0.3 per cent growth in Britain.

She said that businesses can spread payment of next year’s higher rates bill over three years through a rates deferral scheme.

She added: “We are taking every possible step to enhance economic and consumer confidence, as well as support business through difficult trading conditions.”

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Aucthtermuchty

Monday, February 20, 2012 at 11:46 PM

@henrieeta Scots have never been richer than they are now , and they have never benn fatter . If they got more oil money , then they would be fatter still , and we would have to import many millions of East Europeans to do our work thereby diluting Bonnie Scotland even further , wheres the point in that ?

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Aucthtermuchty

Monday, February 20, 2012 at 11:43 PM

@henrieeta Scots have never been richer than they are now , and they have never benn fatter . If they got more oil money , then they would be fatter still , and we would have to import many millions of East Europeans to do our work thereby diluting Bonnie Scotland even further , wheres the point in that ?

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george toot toot

Monday, February 20, 2012 at 05:17 PM

Scotland, England, Wales and N. Ireland do not have the same income level distribution. As such the simplistic analyses in the article have absolutely no meaning - it's just more waffle.

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duelaynomore

Monday, February 20, 2012 at 11:13 AM

No parking no shopping ! Dubious tax increases impending, reduced spending, more saving. Instabilty equals caution, job security is paramount. Who is creating new jobs...who is creating new jobs,,,, who is creating new jobs ???

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Tintock Pete

Monday, February 20, 2012 at 11:13 AM

Just think how much worse it would be if it wasn't for the public sector pay freeze, the annual benefits rise and the council tax freeze if this is only the effect of the private sector pay and jobs cuts.

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haggishunt

Monday, February 20, 2012 at 10:24 AM

Is it really a surprise that shops are suffering when huge amounts of a family's income is spent on fuel bills for the home, fuel for the car council tax and income tax. It is a wonder some people have enough for food.

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7

edinaloka

Monday, February 20, 2012 at 09:49 AM

Savvy shopper??? enjoy your race to the bottom. I hope that your income doesn't require any ethics or you may find yourself being outsavvied.

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6

Abridged too Far

Monday, February 20, 2012 at 09:32 AM

Yes, it would be interesting to see how internet shopping has affected the figures. One of the problems with town centres is they have become homogenised. With the lack of choice in some towns towards small independants over the large retail stores, the savvy shopper can use the stores simply as viewing studios. The final purchases can then be made online, usually with some discount and without the pressure to buy the extended warranty

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The Ayrshire Bard

Monday, February 20, 2012 at 09:07 AM

The small corner shops became redundant with the advent of fridges and home freezers. Now the big ones are suffering as people simply log onto the internet. Who needs the hassle of city parking and fighting your way through the crowds when you can do it all from the comfort of your home. Just never buy anything by direct bank transfer or you'll wait a long time for your purchase to arrive. I speak from sad experience.

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Charles Linskaill

Monday, February 20, 2012 at 01:02 AM

It Certainly is Not!, ‘Troubled times’ for shops, and high street stores who are savvy, and have the modicum of intelligence to meet consumer demands, and what their purses can afford, But the Complacency, and arrogance of some shops and stores will see their demise, Only them to blame, and nothing else, While others like Pound-Land do a roaring trade, and have customers flocking in, and purchasing their goods, like there was no tomorrow, There is no place for the ignorant shops, and stores in these times of global hardship

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Charles Linskaill

Monday, February 20, 2012 at 12:59 AM

It Certainly is Not!, ‘Troubled times’ for shops, and high street stores who are savvy, and have the modicum of intelligence to meet consumer demands, and what their purses can afford, But the Complacency, and arrogance of some shops and stores will see their demise, Only them to blame, and nothing else, While others like Pound-Land do a roaring trade, and have customers flocking in, and purchasing their goods, like there was no tomorrow, There is no place for the ignorant shops in these of global hardship

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2

HorridHenrietta

Monday, February 20, 2012 at 12:37 AM

Here are some interesting links. Enjoy! ............................................................................................................ http://www.aljazeera.com/programmes/frostovertheworld/2012/02/2012216134655442653.html ............................................................................................................ Interesting interview with Alex Salmond also interview with Paul Krugman. ............................................................................................................ http://online.wsj.com/article/SB10001424052970204880404577224831981313426.html?mod=googlenews_wsj#articleTabs%3Dcomments ............................................................................................................ Interesting comment Paul Singapore Wrote: I am not a Scottish Nationalist but this article is the biggest load of baloney that I've read yet about this issue. Rather than rebutting every lie that it propagates lets focus on one part of the 'Scottish' economy, it's 90-95% share of North sea oil and gas. This sector has been widely reported to contribute no more than 11-12billion per year to the UK economy and thus won't make that much difference to an independent Scotland. The real figures are more shocking. I enclose an excerpt from a commons debate initiated by the Conservative MP Nicolas Soames in 2011. This is just one thing that Scotland with 5million people (8% of the UK total) gains on independence. NICHOLAS SOAMES SECURES ADJOURNMENT DEBATE IN THE HOUSE OF COMMONS ON NORTH SEA OIL AND GAS HC 1018-i and -ii.] "The taxes forecast to be raised from the industry in 2011-12 include some £6 billion in income tax, national insurance contributions and corporation tax paid by the supply chain companies, with an additional £11 billion from taxes on production itself. That amounts to 25% of all the corporation tax received by the Exchequer. The production of indigenous oil and gas improved the balance of payments by £35 billion in 2011, thus halving the trade deficit, and the supply chain added another £5 billion to £6 billion with exports of oilfield goods and services. Incidentally, that is an aspect of the industry that is doing extremely well here and overseas, and it is flying the flag for Britain effectively". Also in the same debate the he mentions that this industry employs over 400,000 people in the UK with more than half outside Scotland. Thus North sea oil and gas (UK export no: 1) and Scotch Whiskey (UK export no: 3) contributes more to the UK economy than the city of London (financial products and insurance) . Combine this with the fact that Scotland will have 55% of Europe's total oil reserves, 25% of Europes wave power and 25% of Europe's wind power (all for a nation with less than 1% of Europe's population) and any suggestions that Scotland will not be financially secure can be viewed as utterly risible (or deliberately mendacious).

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Jools in Edinburgh

Monday, February 20, 2012 at 12:25 AM

Cue Charles with his messages of doom and gloom.

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