Scots high streets suffer year-on-year August slump after record 2014

The report said that sales August 2015 marked a stark contrast to sales during the same month of last year which were at a record high, boosted by events like the end of the Commonwealth Games.

Like-for-like sales, which exclude any spending in stores which opened or closed in the intervening year, decreased by 2.9 per cent on last August, when they had decreased by 1.7 per cent.

When adjusted for deflation measured by the BRC Nielsen Shop Price Index (SPI), total Scottish sales decreased by 1.1 per cent.

There was also a drop in total food sales and total non-food sales.

Total food sales last month were 3 per cent down on August 2014, when they had decreased by 1.8 per cent, and an improvement on July this year.

When adjusted for the estimated effect of online sales in Scotland, total non-food sales decreased by 0.5 per cent on August 2014, when they had increased by 2.8 per cent, their second fastest growth in 2014, excluding Easter distortions.

The three month average for total non-food sales growth was 0.6 per cent (online adjusted) in Scotland compared with 3 per cent in the UK as a whole.

David Martin, Head of Policy and Social Affairs, Scottish Retail Consortium, said: “Despite an uptick in consumer confidence, August sales performance pales in comparison to the like for like performance a year earlier when major events, like the finale to the Commonwealth Games, helped to drive footfall. This time last year, food sales were down 1.8 per cent whilst non-food sales had posted the third best growth rate of 2014. By comparison, food sales declined 3 per cent in August and non-food declined by 1.9 per cent on a non-adjusted basis.

“Although retailers had a tougher time during August getting consumers to spend, the three-month rolling average for total sales was the best recorded since May and suggests a general improvement across the longer term. Nevertheless, the trading environment remains incredibly challenging for retailers, especially for those selling food.

“Against this difficult backdrop, government-inspired costs continue to rise. This toxic combination has resulted in significant retail casualties with more announced this month. This should give politicians moment to pause and reflect about policies that can aide the retail industry as they turn to developing their manifestos for the 2016 Scottish election.”

David McCorquodale, Head of Retail at KPMG, said: “High Street sales in Scotland were weak on all fronts during August with very little glimmer amidst the gloom. Despite being against a relatively strong post-Commonwealth Games, pre-Referendum comparative for August 2014, the decline in sales in August is worse than both the 3-month and the 12-month averages.

“The usual culprit to blame for poor sales – the weather – was not at fault this month as both temperatures and sunshine hours were at or above average for the month. Adjusting for inflation in the Food sector, this segment declined by 3.2 per cent compared with growth in the UK as a whole. One flicker of light was the online adjusted three month average total Non-Food sales growth showing some positivity over the summer months. As consumer confidence in Scotland oscillates between negative and positive, retailers will be very keen to ensure that, before long, the confidence can return sufficiently to release some of the Scottish purse strings. As retailers try to wean the consumer off the discount drug, this can only be achieved if the consumer feels willing to commit.”