Sales take Scottish independence referendum hit

Scottish retailers suffered their worst month on record in September as uncertainty caused by the independence referendum meant sales plunged 2.9 per cent year-on-year.

'A nation gripped by politics shunned the high street' - David McCorquodale. Picture: PA

Figures published today by the Scottish Retail Consortium (SRC) and KPMG show prices continued to fall, but even allowing for deflation, sales were lower. And on a like-for-like basis, which strips out new store space, the fall was 4.2 per cent.

David McCorquodale, head of retail at KPMG, said: “A nation gripped by politics and blessed with unseasonably warm weather shunned the high street in September.

“There can be little doubt that the engagement in the referendum debate and the uncertainty surrounding the outcome of the contest cast a shadow over the spending of the Scottish consumer in the first half of the month and impacted the value of sales, despite the high footfall on Scotland’s high streets.”

He added that the unusually warm and sunny weather also affected fashion and footwear retailers who had been trying to sell new autumn collections.

“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,” he said.

“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. The confidence and job security of the consumer will also play its part.”

Data from the British Retail Consortium (BRC) and KPMG last week showed that sales fell across the UK, although not as dramatically – like-for-like sales were down 2.1 per cent on the same month a year earlier.

The latest figures come as grocery industry expert Kantar Worldpanel revealed that its measure of inflation had gone negative for the first time, as the ongoing gains made by discounters Aldi and Lidl forced the wider sector into a price war.

Figures released yesterday showed like-for-like prices declined by 0.2 per cent year-on-year over the last 12 weeks.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “While the supermarkets are battling it out on price, the real winners are consumers.

“Extensive price cutting by some supermarkets in a bid to win the price war means that customers are saving on everyday items such as vegetables and milk.”

Despite their efforts to match the discounters, Morrisons, Sainsbury’s and Tesco all saw their sales slip further in the 12 weeks to 12 October.

But Kantar said beleaguered giant Tesco “may be turning a corner” as its 3.6 per cent sales slide was the grocer’s best figure since June.

While price is a key battle ground among the big four – with US-owned Asda emerging as the victor – at the top end of the market Waitrose secured a record grocery market share of 5.2 per cent. It has boosted its sales by 6.8 per cent over the past year, and has now grown every month since March 2009.