According to the Scottish Retail Consortium (SRC), Scottish fashion sales took a hit due to poor August weather, but the beauty sector managed to thrive. While there was a headline rise of 5.6% in total monthly year-on-year sales, it fell short of the 6.2% rise from the previous year and the three-month and 12-month average growth rates. When adjusted for inflation, the 5.6% rise actually translated to a 1.3% decline.
The decline in sales can be attributed to a few factors. Firstly, shoppers were opting for back-to-school apparel instead of purchasing new fashion items. Additionally, the subpar weather caused many people to trade down and spend less on clothing. Grocery sales also suffered, reaching their lowest level since July 2022. This decline was partly due to a lack of barbecues being held, as the weather was not conducive to outdoor gatherings.
Despite these challenges, there was a bright spot in the health and beauty sector. Skincare, cosmetics, and fragrances all performed well as people spent more time socializing and treating themselves. In fact, August sales in this sector increased by 5.2% on a like-for-like basis compared to the previous year.
When looking at non-food sales as a whole, there was a 3.1% increase compared to the previous year. When adjusted for the estimated effect of online sales, the increase was 2.5%. However, these figures were still lower than the three-month and 12-month average increases.
David Lonsdale, Director of the Scottish Retail Consortium, acknowledged that the decline in sales was a result of the wet weather and households’ tighter finances. He emphasized the importance of maintaining consumer confidence as the holiday season approaches. This is particularly crucial for retailers who heavily rely on the Christmas shopping season for their viability.
Paul Martin, UK Head of Retail at KPMG, echoed the sentiment, stating that retailers are hopeful for a successful golden quarter leading up to Christmas. Despite the challenges faced by the retail industry, there is optimism that consumer spending will pick up and contribute to a strong end to the year.
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