Scottish retail is on the brink of a crucial period as it gears up to reopen after months of Covid-19 restrictions. The Scottish Retail Consortium (SRC) has sounded the alarm, stating that non-essential retail in Scotland will face a “long and challenging road ahead.” Recent data from the SRC-KPMG Scottish Retail Sales Monitor highlights the need for catch-up work in the sector.
The figures reveal that non-food sales in Scotland continue to struggle. Compared to 2019, sales of non-food items during the five-week period from February 28th to April 3rd have dropped by almost half. While total sales in March decreased by 13.8% in comparison to March 2019, this was an improvement from the steep decline of 23.7% recorded in February. On a two-year like-for-like basis, Scottish sales fell by 11.5% when compared to March 2019.
The drop in non-food sales is even more pronounced, with a 49.2% decrease in March compared to the same period in 2019. When factoring in the estimated impact of online sales, total non-food sales decreased by 10.5% in March compared to March 2019. Despite this slight improvement, the three-month average decline of 20% indicates that Scottish retail still faces significant challenges.
Paul Martin, the head of retail at KPMG UK, emphasizes the critical nature of the coming months as restrictions ease and consumer confidence gradually returns. While the 14% decline in total sales is cause for concern, Martin highlights that it is an improvement from the steep decline of 23.7% observed in February. He also stresses the importance of comparing sales on a two-year basis to gain a more accurate understanding of Scotland’s high street performance.
Non-food sales have been severely impacted throughout the pandemic, with the sector in the UK experiencing a staggering loss of £27 billion. While there is hope for recovery and a potential post-pandemic boom, for some struggling retailers, it may come too late.
Overall, the reopening of Scottish retail is an essential moment for the industry. The challenges faced by non-essential retail in Scotland are significant, and retailers must navigate the road ahead carefully to ensure their survival and success in the post-pandemic landscape.
Useful links:
– Scottish Retail Consortium Official Website
– KPMG UK Official Website
