Autumnal sales fail to hit the high street mark

Releasing its latest sales monitor, the Scottish Retail Consortium (SRC) warned there was “little to be optimistic about”.

Total sales fell by 0.7 per cent in August compared to a year earlier – the second worst result since the trade organisation began compiling figures in 1999. May holds the record with a year-on-year drop of 1.1 per cent.

On a like-for-like basis, which strips out the impact of store openings and extensions, sales last month slumped 2.1 per cent. Both the like-for-like and total readings were far poorer than recent UK-wide figures compiled by the British Retail Consortium.

Richard Dodd, the SRC’s head of media, said “most parts” of Scottish retailing were suffering with non-food stores bearing the brunt.

“The coldest August weather since 1993 was no help but it’s the impact of job fears and falling spending power that have left customers in Scotland less confident than those in other parts of the UK,” Dodd noted.

David McCorquodale, head of retail in Scotland for KPMG, the accountancy giant that helps compile the monthly monitor, said: “With retailer margins already significantly reduced through promotional activity and another rent day looming later this month, cash management is a key focus for many retailers at a time when the big decisions are also being made for Christmas.”

Today’s report showed like-for-like sales of food and drink fell by 0.4 per cent last month. The “unsettled and rainy” weather is said to have affected sales of salads and barbecue products, although the autumnal feel saw shoppers snap up roasting meats, stews, soups and puddings.

Overall, like-for-like sales of non-food items slumped 3.7 per cent. Despite a lift from schoolwear sales and some new autumn/winter lines, clothing retailers suffered as consumers tightened their belts.