Job concerns drive Scottish shoppers off the high street

SHOPPERS steered clear of Scottish high streets last month as consumers worry about job security ahead of the government's spending cutbacks.

Total like-for-like sales in September were 0.4 per cent lower than the same month last year - the fifth time in the last six months that sales have shown a decline.

That reversed August's 0.1 per cent increase, the Scottish Retail Consortium (SRC) said yesterday.

It has consistently found that Scottish consumer confidence is weaker than in the rest of the UK, with greater concern about public-sector job cuts north of the Border making shoppers more cautious about spending their cash.

Like-for-like sales across the UK for September were 0.5 per cent up on the same month in 2009.

Fiona Moriarty, director of the SRC, said: "Apprehension about public-sector job cuts in the wake of today's comprehensive spending review and a widespread pay-freeze saw demand for non-essentials fall significantly. The sluggish housing market continues to put the brakes on furniture, homewares and DIY purchases.

"Interestingly, the same nervous sentiment which is preventing consumers from buying big-ticket items is actually helping to maintain food sales growth. Belt tightening and meal deals have seen restaurant dinners traded in for stay-at-home eating."

Like-for-like food sales for September were up 1.6 per cent on the same month last year, while non-food sales were down by 2.2 per cent on the same month last year.

September's increase in food sales was slightly down on the 1.7 per cent rise the previous month, with shoppers looking for good deals. However, ready meals and meal deals sold well, as people opted to stay in rather than eat out.

Clothing sales fell further, showing their largest decline since April. And while colder weather at the end of the month gave a modest boost to autumn/winter ranges, sales were still affected by consumer caution.

This also impacted on sales of footwear, with sales still down on a year ago.

Sales of furniture and floorcoverings weakened again as a result of the struggling housing market and fears over job cuts and personal finances. Sales of homewares also weakened again and remained down on a year ago overall.

David McCorquodale, head of retail in Scotland for KPMG, said the September figures suggested that "Scotland is struggling to haul itself out of recession".

However he added: "While these results are not good, they are not as bad as many retailers may have feared.

"Given the higher proportion of people employed in the public sector compared to the rest of the UK, retailers will not be too surprised by this continued negative trend."