September a better month for Scotland's retailers

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supermarketImage source, PA

September was a more upbeat month for Scotland's retailers, according to the latest survey.

Although total sales were down again, last month saw the best sales performance since October 2014 once Easter distortions were factored in.

Non-food sales actually grew slightly, with clothing, footwear, furniture and home categories driving sales.

But overall, the Scottish Retail Consortium-KPMG monitor found sales were down 1.3% on last year.

Like-for-like sales which exclude factors such as new store openings were down by 1.7% on September 2014.

Online sales performed reasonably well, up almost 2%. Food continued to struggle, however, as supermarkets continued to push volume of sales, rather than value.

'Challenging times'

David McCorquodale, head of retail at KPMG, said: "September saw better sales figures but retailers will not be getting carried away.

"Adjusted for deflation, sales in Scotland grew by 0.7%, the best growth for a year, excluding Easter distortions, but this is compared to the worst month of the last year.

"Food sales continued to decline in real terms as they have for the last 22 months, excluding Easter distortions, and much has already been said about the challenges in the grocery sector.

"There was better news in non-food, again compared to a period last year when referendum-fever had gripped the country and paused consumerism. Fashion sales were boosted by more seasonal weather and sales of household products also did well.

"However, with the gap widening against the rest of the UK, retailers in Scotland expect a lot of hard work ahead to achieve a reasonable Christmas season. Pricing and promotions will play a key role in driving demand and margin."

Image source, PA
Image caption,

Clothing and footwear helped boost sales figures

David Martin, of the Scottish Retail Consortium, said: "Although September's retail figures were up against a soft comparable period last year with the worst performance of 2014, it doesn't detract from what was an upbeat month for retailers especially in the non-food categories.

"Looking ahead, the trading environment remains challenging for retailers not least in terms of the excessive burden of Government-imposed operating costs, however they will be hoping to capitalise on improvements in consumer confidence in the lead up to the Christmas period."

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