In April, Scotland experienced a notable rise in sales, although the demand for fashion lagged behind that of food sales. According to the Scottish Retail Consortium (SRC), sales increased by 9% during the period of 2-29 April. However, this growth was lower than the 15.3% increase seen in the same period last year. Adjusted for inflation, the year-on-year retail growth was a mere 0.3%.
The SRC highlighted that the Easter holiday provided a slight boost to retail sales in Scotland. Nevertheless, discretionary spending on clothing and footwear was overshadowed by food shopping, resulting in a significant disparity in performance between food and non-food categories. David Lonsdale, the director of the SRC, specifically noted that the positive trend in real-term retail sales was primarily driven by health and beauty categories, as well as individuals investing in home and garden enhancements.
A comparison of like-for-like sales demonstrated that Scottish sales in April 2023 increased by 6.2% compared to the previous year, which had witnessed a larger 12.7% increase. Total non-food sales only saw a 3.9% increase in April 2023, in stark contrast to the considerable 25.7% surge in April 2022. After adjusting for the estimated impact of online sales, total non-food sales witnessed a 2.5% increase, significantly lower than the 18.8% increase recorded in the previous year.
Paul Martin, the UK Head of Retail at KPMG, attributed the underperformance in clothing and footwear sales to the lack of sunny days in April. Additionally, he highlighted the potential challenges that may arise in the upcoming months. These challenges include the end of government energy support, diminishing savings, and rising household bills. Martin emphasized the importance of managing soaring food inflation in order to encourage consumers to allocate their spending towards non-essential items.
To summarize, while Scotland experienced an increase in sales during April, the weak demand for fashion in comparison to food sales indicates a divergence in performance between these two categories. Economic factors such as the end of government energy support and rising household bills may present challenges in the near future. Controlling food inflation will be crucial in influencing consumer spending on non-essential items.
(Useful links:
1. BBC News: Scotland sees rise in sales for April
2. The National: Scotland experiences increase in retail sales, particularly in food)
