Scottish licensed trade reports declining festive sales

According to a survey carried out by the Scottish Licensed Trade Association (SLTA) of 600 retailers’ performance over the Christmas and New Year, 30 per cent of outlets showed growth, 26 per cent remained stable but 44 per cent were in decline.

The industry body’s findings may come as a surprise to some on the back of positive summer results for the industry which had seen strong growth in sales buoyed by increasing demand for soft drinks and craft beer.

However, Paul Waterson, SLTA chief executive, said he was concerned by the survey’s most recent findings, particularly for village pubs which were integral to tourism and their community.

“Over 60 per cent of outlets are being hit with higher rateable values, with average increases of 14 per cent, whilst over 70 per cent are seeing increases in the cost of utilities.

“We also continue to see huge pressure for retailers serving rural and tourist locations with over 50 per cent showing a decline over the festive period versus the prior year.”

Mr Waterson said he believed the decline in sales was likely to lead to further closures and wider impacts on tourism and employment for licensed businesses located outside urban centres.

“The impact of recent drink-driving legislation, plus rates increases and minimum wage legislation makes trading in these areas even more challenging for retailers”, he said.