Scottish retail sales still falling

Dec 12 2012

High streets have endured a challenging year, as the latest figures show falling sales again.

November like-for-like sales, which strip out factors like new store openings, are 2.2% lower than they were a year ago, according to the latest Scottish Retail Consortium (SRC) KPMG retail sales monitor.

Total sales are also down 1.2% over the year but this increases to a fall of 2.7% when inflation is factored in.

The performance in Scotland is worse than the UK as a whole, with November's total sales up 1.8% and like-for-like sales up 0.4% on the same month last year.

But Fiona Moriarty, SRC director, said retailers are reporting increased sales in recent weeks.

The retail sales monitor shows that while food sales increased in November, sales of non-food sales dropped. Total non-food sales are down 4.7% compared with November last year and like-for-like sales are down 5.2%.

Last month's cold and wet weather is said to have put off shoppers, partly explaining the poor sales of clothing and footwear. Meanwhile, total food sales for November are 2.6% higher than 12 months ago, while like-for-like sales are up 1%.

Ms Moriarty said: "These underwhelming figures, which scarcely improve on October, mark the closing stages of what has been a challenging year for retailers in Scotland."

A Scottish Government spokeswoman said: "The Scottish Government is doing all it can to strengthen the retail sector. Our latest Retail Sales Index shows that the retail sales performance over the year continues to show growth in Scotland, with volume growth of 0.9% in the third quarter of 2012, compared to 0.7% for GB as a whole. As our draft budget demonstrated, we are taking action to boost growth with a tax relief package worth over £500 million this year, offering the most supportive business environment in the UK and reducing or removing business rates for three in five business premises across Scotland.

"In his Autumn Statement, the Chancellor finally heeded Scotland's calls to boost capital spending. The steps he has taken are welcome but they only take us half-way towards common sense in terms of investment and there is still a lack of a coherent plan to return the economy to growth. Only with the full levers of independence can Scotland fully capture economic opportunity and do so more efficiently and effectively than currently happens in the UK."