High street gloom as falling sales set alarm bells ringing
Scottish shops were hit by the biggest fall in sales in a decade. Picture: Getty
SHOPS in Scotland suffered their biggest fall in sales for more than a decade last month, new figures reveal today.
A glimmer of hope offered by yesterday’s falling inflation rate was offset by more gloom on Scotland’s high streets, where there has been a 1.5 per cent drop in sales for January compared with a year ago.
The fall is disclosed in the latest monthly retail sales monitor by the Scottish Retail Consortium (SRC), which examines traditional shopping patterns and excludes most goods bought over the internet.
The SRC report, published today, said the fall was the largest in total sales since 1999 and experts said the figures would “set alarm bells ringing” for retailers.
Opposition politicians called on Alex Salmond’s government to ditch its plans for a retail levy that it proposes to raise on outlets selling alcohol and tobacco, arguing that it would harm businesses further.
The SRC said consumer confidence in Scotland remained lower than the UK as a whole, with sales falling faster than anywhere else in the UK.
Discounts and clearance sales in January failed to overcome consumer caution, with non-food sales showing the biggest fall since the survey began in 1999.
The poor non-food sales, which contracted by 5.5 per cent, outweighed the more encouraging food sales, which grew by 2.8 per cent since last year. According to the report, overall total sales in January were 1.5 per cent down on January 2011, when they had increased 1.9 per cent.
Like-for-like sales, the percentage change in the value of comparable sales compared with the same period a year earlier, were 2.6 per cent lower than a year ago. January’s fall was the worst since May 2011 and the ninth decline in the past 12 months.
SRC director Ian Shearer said: “A sales decline on this scale sets alarm bells ringing for Scottish retailers.
“Combined, as it is, with some above-inflation cost pressures, there are potentially worrying implications for Scotland’s largest private-sector employer.”
As in the UK results, both like-for-like and total sales worsened in January after a better December. By both measures, sales fell more quickly in Scotland than elsewhere.
Mr Shearer added: “Customers have confronted reality again since Christmas. Consumer confidence remains low, Scottish household incomes are being squeezed by increased utility and fuel prices, and continued fears over job prospects and the wider economy are front-of-mind for many – deterring purchases which are not immediate needs. The comparison with a year ago, when there was a final burst of pre-VAT-rise spending, is also not helping this year’s figures.
“The biggest year-on-year drop in overall sales in over a decade is a sign of troubled times for retail.”
The figures led to Conservative finance spokesman Gavin Brown calling for an end to the SNP’s retail levy, the controversial measure which its critics have labelled the “Tesco Tax”.
Mr Brown said: “These figures demonstrate the fragility of the retail sector.
“The Scottish Government should be doing everything in its power to assist the sector. The very last thing we need is a Scotland-only retail tax which could harm investment, cost jobs and make us less competitive than the rest of the UK.
“I am calling on the Scottish Government, even at this late stage, to abandon their ill-thought-out retail levy.”
Leigh Sparks, professor of retail studies at Stirling University, said the figures showed a “downward spiral”.
“It is looking bad and there is no sense of how things might get better,” he said. “There are more sales going on to the internet, so perhaps there is an effect there that is not being shown in the figures.”
A Scottish Government spokeswoman said: “These figures offer a partial account of the performance of the retail sector in Scotland, and there is no doubt that circumstances remain difficult due to a lack of growth in the UK economy.
“The official Retail Sales Index provides a more robust measure of retail activity in Scotland, and shows that both the volume and value of retail sales increased in the fourth quarter of 2011.”
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Comments
There are 25 comments to this article
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duelaynomore
Thursday, February 16, 2012 at 02:47 AMWho wants to shop in the high street of our many towns and cities? There's nowhere to park your car without a fat fee. There's the pleasure of getting wet feet tramping between shops, and of course the pleasure of being accosted by beggars and ne-err do wells demanding "any loose change", or have yee gota fag mate? If you do decide to go to the city centre by bus to avoid the car park fees, you have the worst experience of running the gauntlet on your return (especially if its after dark). Anything after 8pm is almost suicidal if the route continues to any of the big estates (Niddrie etc..)..............................The town planners can take most of the blame for this, as pedestrianisation only works where there is adequate cover from the weather...and sensible methods for getting there. So if I'm going for my weekly shopping, do I go where I can park my car or do I do multiple trips with my arms full of my messages?.
Jolly
Wednesday, February 15, 2012 at 08:11 PMThere will be no High St gloom in an independent Scotland!!
Biscuit McVittie
Wednesday, February 15, 2012 at 11:37 AMLooks like ‘Plan McB’ is working with even more Scots on the dole (to say otherwise would be anti-Scottish).
Simonsaid
Wednesday, February 15, 2012 at 11:20 AMAYE IT'S AW WESTMINSTER'S FAUT - JIST ASK OOR GREAT LEADER
KINGFISHER1
Wednesday, February 15, 2012 at 10:56 AMThe consumer lobby have only themselves to blame for worshipping big is beautiful and forcing the small retailers out of business. Likewise the internet, assists the large organisations, including the foreign domiated ones, who have no interest in what happens in the local high street The banking mess, still not sorted, means that many consumers will refuse to spend ,except on necessary items. The mess in the banking industry is now being seriously aggrevated by the mess in the gas and electricity industries,and that includes the ineffective wind farms and unjustifed green levies. Corruption comes in various forms, but if the Governments, Westminster and Holyrood, really intend to sort their economy, they MUST look at the corruption in the Gas and Electricity industries, and ROOT IT OUT, capping, if necessary, the charges and tarrifs which can be applied. If the Governments do not take effective steps, it will not simply be fires in far away Athens they have to worry about. London has already had a taste of disaffection! It was , if I recall correctly, once said, Government of the people, for the People, by the People. Athens is again making that point! The Local Goverments here should take heed!
Mark Bishop
Wednesday, February 15, 2012 at 10:31 AMI would think that in the light of the uncertainty about the future of Scotland, people are saving for a rainy day. It just doesn't make fiscal sense to blow all your money if you don't know how high the fuel prices will rise, will you be able to hold on to your job, will your taxes go up, will you have to relocate to find work... and so on. Sensible Scots are thinking ahead.
darrellinyvr
Wednesday, February 15, 2012 at 09:15 AMTimes are obviously tougher across the pond. Here in Alberta sales have risen 3.3% in Edmonton and Calgary over last year as the provincial economy booms and expands faster than the rest of Canada. While Toronto, Montreal are heading into the tank the retail sales in Western Canada have risen due to the booming economy here out west. Also with the 2011 census just released figures show that both Edmonton and Calgary increased by 12-13% in population since 2006 as Canadians are migrating out west for the increasing job numbers. Also increasing retail sales increases as the provincial population in Alberta is swelling so fast. now pushing towards 4 million. at nearly a quarter of a million moving in per year from other provinces and other countries.
paulr
Wednesday, February 15, 2012 at 08:08 AMas usual, people are looking at th shops and saying 'Do i need this?' if the answer is no they are not buying, thats why food sales have apparently risen, people are spending on things which are required and cutting back on the rest.
Chappit Tatties
Wednesday, February 15, 2012 at 07:38 AMSo it has come down to this..... we are a nation of shopkeepers after all. (Thanks, Maggie Thatcher). Our whole econonomic well being depends on what we buy in Tescos!!!!!!
paul o
Wednesday, February 15, 2012 at 07:27 AMSame old story on the other side of the world, in Aust. As long as "we're" fixated upon the notion of never-ending growth, be it sales or consumption, people are going to be disappointed. The 'western' economies have had a good run since the 1950's but it has to end sometime. Never-ending growth is impossible. Look at Japan. Crushed in 1945, they resurrected their economy, blitzed themselves (& the world) with prodigious manufacturing of high quality but by the 1990's everyone in Japan had bought everything they could possibly want and Japan has been in a state of "no-growth" since. Industry can produce what it likes, but if everyone who wants 'one' and can afford 'one' already has 'one', then growth hits the wall. We just need governments, economists and industrialists to recognise the fact!
vladhibs
Wednesday, February 15, 2012 at 02:18 AMIm going to stick my neck out here and predict that online shopping has went up!
Tarheel Chief
Wednesday, February 15, 2012 at 01:40 AMIt's hard to imagine a more myopic group of retailers than those living in Scotland. Whether you go online to shop or examine special sale items,the news is the same. Scotland is far outside the parameters of pricing. They act like they are producing Porsche automobiles where price is no object. Whatever happened to reality?
Cosmic Charlie
Wednesday, February 15, 2012 at 01:34 AMSorry Big Chas. I don't click on photo links supplied by a person whose sanity is dubious, to say the least. I doubt Knacker of the Yard would accept the defense of "A big boy online gave me the addy".
Charles Linskaill
Wednesday, February 15, 2012 at 01:25 AMhttp://a4.sphotos.ak.fbcdn.nethphotos-ak-ash4/419778_2970934586593_1058593935_4355574_1936502885_n.jpg
Charles Linskaill
Wednesday, February 15, 2012 at 01:18 AM#8. take a neb++++++++++++++++++++++++++++++++++++++ http://a4.sphotos.ak.fbcdn.nethphotos-ak-ash4/419778_2970934586593_1058593935_4355574_1936502885_n.jpg
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