The recent announcement of a three-week lockdown in parts of Scotland has sent shockwaves through the retail industry, particularly as it comes at a crucial time leading up to Christmas. The Scottish Retail Consortium (SRC) has labeled the lockdown as a “devastating blow” to retailers who were already facing difficulties due to sluggish trading in October.
With Scottish First Minister Nicola Sturgeon’s enforcement of strict level 4 restrictions in 11 local council areas, non-essential stores have been forced to shut down from 6pm on Fridays. This move has had a significant impact on over 45% of non-essential retailers in the affected regions, resulting in an estimated weekly loss of £90 million in revenue during the lockdown period.
The timing of the lockdown could not have been worse for retailers, who heavily rely on the holiday season to boost sales and carry them through the slower winter months. SRC Director David Lonsdale expressed his dismay over the announcement, stressing that the closure of high street stores during the crucial Christmas period is a major setback for the retail sector in Scotland.
Recent data from the SRC paints a grim picture of the situation, with a sharp 8.5% year-on-year decrease in retail sales value in October following five consecutive months of gradual improvement. This setback underscores the fragile state of Scottish retailers, who were only just beginning to recover from the impact of the pandemic before the new lockdown measures were put in place.
Paul Martin, UK head of retail at KPMG, emphasized the severity of the crisis, noting a staggering over 19% drop in non-food sales and a significant overall decline in year-on-year sales. These figures highlight the urgent need for support to ensure the survival of retailers on Scotland’s high streets.
As retailers gear up for a challenging winter season, the closure of stores in the lead-up to Christmas poses a serious threat to their viability. The Scottish retail sector is in desperate need of assistance and innovative solutions to navigate through these turbulent times and emerge stronger on the other side.
For more information on the impact of the lockdown on Scottish retailers, visit the official SRC website here. Additionally, to understand the latest updates on COVID-19 restrictions in Scotland, check out the official Scottish Government website here.
