SCOTTISH retail sales have been reported as being “stuck in the doldrums,” according to the latest figures from the Scottish Retail Consortium (SRC) and KPMG. The data indicates a 0.5% decline in total sales for September 2024 compared to the same month last year, a stark contrast to the 6.1% growth observed in September 2023. On a like-for-like basis, sales decreased by 0.3%, following a significant increase of 5.5% during the same period last year
Despite this downturn, there was a slight glimmer of hope with a 0.1% rise in real terms, attributed to consumers returning to shops after a summer filled with events and activities.
Ewan MacDonald Russell, deputy head of the SRC, noted that September brought some stability after a challenging summer for retailers. He highlighted that fashion and footwear sectors performed better due to changing weather conditions prompting shoppers to update their autumn wardrobes.
However, the figures also reveal ongoing challenges within the retail sector. Grocery sales have continued to decline for the fourth consecutive month, dropping by 0.7%, while non-food sales fell by 0.3% compared to last year.
Adjusted for online sales, non-food categories did see a modest increase of 1%, but overall performance remains below expectations.
Retailers are now looking towards the upcoming Chancellor’s Budget with hopes for measures that could enhance consumer confidence ahead of the critical Christmas trading period. Russell expressed concerns about potential “expensive surprises” for businesses already burdened by high operating costs and regulatory pressures.
Linda Ellett, UK head of consumer, retail, and leisure at KPMG, emphasised that while there was modest growth in September, consumers are still cautious due to rising energy prices and economic uncertainties. She noted that children’s clothing and accessories saw some improvement as families adjusted their spending habits following back-to-school preparations.
As retailers brace for the final quarter of the year, they face an uphill battle to regain momentum in a market characterised by fluctuating consumer sentiment and competitive pricing pressures.
