High Street: Scottish non-essentials sales suffer in September

The sale of non-essential goods dropped in Scotland last month, new research conducted by the Scottish Retail Consortium (SRC) and KPMG reveals.

High Street: Scottish non-essentials sales suffer in September

The report revealed that the number of total sales in Scotland decreased by 1.9% compared with September 2018, when they had increased by 0.9%.

This is worse than the 3-month average decline of 0.9% and the 12- month average decline of 0.4%. Adjusted for deflation measured at 0.6% by the BRC-Nielsen Shop Price Index (SPI), September sales decreased 1.3%.



Also in September, Scottish sales decreased by 2.3% on a like-for-like basis compared with September 2018, when they had decreased by 0.2%. This is worse than the 3-month average decrease of 1.3%.

The report further revealed that total food sales increased by 2.3% versus September 2018, when they had increased by 3.7%. This is above the 3-month average of 2.2% but below the 12-month average of 2.4%. The 3-month and 12-month averages are above the UK’s levels of 1.2% and 1.7% respectively.

Total Non-Food sales also decreased by 5.4% in September compared to September 2018, when they had decreased by 1.4%. This is worse than both the 3-month and 12-month average declines of 3.4% and 2.6% respectively.

High Street: Scottish non-essentials sales suffer in September

Adjusted for the estimated effect of online sales, total non-food sales decreased by 5.3% in September versus September 2018, when they had stayed flat.

On a 3-month basis, the online-adjusted total non-food sales decreased by 2.7%, below the UK Non-Food average decrease of 1.7%.

Ewan MacDonald-Russell, head of policy and external affairs, SRC, said: “Food sales remained solid with retailers noting summer favourites such as strawberries continued to be enjoyed. However, the real concern comes in non-food with a 5.4 per cent fall. Electronics, homeware, and beauty products all suffered from disinterested shoppers, whilst clothing sales were hampered by shoppers choosing summer discounts over autumnal ranges due to the warm weather.

“It’s undisputable consumers are holding back from serious spending commitments and it’s difficult not to conclude the impasse over the UK’s exit from the EU is a reason nervous shoppers are keeping their wallets and purses firmly closed. To prevent life on the high street becoming even harder an urgent Brexit resolution is needed ahead of the vital Christmas trading period.”

Paul Martin, UK head of retail at KPMG, added: “With like-for-like sales declining by 2.3% compared to last year, September’s results reflected the overwhelmingly challenging conditions facing Scotland’s high streets. Once again, food sales have helped to slow the rate of decline, with 2.3% total growth, but the trend in non-food categories is one of long-term decline.

“There’s clear evidence that uncertainty – both politically and economically – is impacting consumer confidence with shoppers choosing to slim down unnecessary purchases and focus on the essentials. The next few months could be make-or-break for many of Scotland’s most high-profile brands. A clear strategy will be essential, focusing on cost reduction, sales maximisation and supply chain efficiencies.”

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