Scotland’s retailers are pinning their hopes on a stellar Christmas period after the weather again conspired to knock back sales.
The latest Scottish Retail Consortium-KPMG monthly survey shows that total retail sales fell 1.2% in Scotland in October when compared to a year ago.
The non-food category did relatively well, with a flat performance year-on-year, but the overall outcome for the month was dragged into negative figures by a 2.7% drop in food sales.
On a like-for-like basis which strips out the effects of new store openings and closures there was an overall 2.7% decline in sales in the month, with food falling back a hefty 4.2% and a 1.4% non-food reverse.
KPMG’s head of retail in Scotland David McCorquodale said October had been a difficult month for Scotland’s high streets as weather conditions proved unfavourable to retailers.
It was now up to shops to convince consumers to part with their cash in the lead-up to Christmas.
“Wet and wild at the start, the month ended with a hot Halloween neither the best conditions for a positive consumer reaction to the promotions on offer,” said Mr McCorquodale.
“The winners were the games sellers and home accessory retailers, where weather plays less of a role.
“Fashion and footwear retailers, who started the year so well, will be concerned with the higher stock levels they are holding now but will do their best to hold their nerve to drive volumes and margins in the six-week lead-up to Christmas.
“The food retailers continued the negative trends that have been such a feature of the year to date, and will be disappointed to feel the gap widening against the rest of the UK for the last three months rolling.
“With six weeks to go and festive adverts on our screens, the annual dance between retailer and consumer has begun.”
The survey’s authors also provided an online adjusted measure of the retail market showing a total 2.1% rise in the non-food category in the month.
David Lonsdale, director of the Scottish Retail Consortium, said: “The total value of retail sales in Scotland edged down once again in October, but at a far more modest rate than in the previous month.
“The bright spots were solid demand for gaming and beauty products as well as the overall positive contribution of online sales, helping sales in the non-food category record its second-highest growth of the past six months.”
While it has been a challenging period, Mr Lonsdale said retailers could take comfort in the fact that disposable incomes were starting to rise.
He said: “Looking forward, retailers will be heartened by the news that growth in average pay is now outstripping inflation for the first time in five years.
“Shopkeepers will be hoping that this alongside sustained rises in footfall over recent months translates into greater levels of confidence and transactions as we approach the important Christmas trading period.”