Covid: 'Blue Christmas' ends 'worst year' for retailers

Scotland's high streets suffered a "blue Christmas" as retailers recorded their worst ever December trading, according to an industry survey.

The Scottish Retail Consortium (SRC) said lockdowns at the start and end of the month "snuffed out" hopes of a late rally to end the year.

Total sales plummeted year-on-year by 16.6%. Food sales were up by 3.3% but non-food slumped by more than a third.

SRC said 2020 was the worst sales year in the survey's 22-year history.

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Last month, it estimated that each week of lockdown meant non-essential stores missing out on £135m of lost sales.

Since then, garden centres and homeware shops have been compelled to close too, and the government has placed curbs on retailers' Click and Collect services.

'Shops clobbered'

December saw the food category's second weakest monthly performance since the spring, despite a lack of competition from eateries.

SRC said non-food shops were "clobbered" by closures for much of the month and the loss of the post-Christmas discounting period.

The industry body said ongoing restrictions and a tightening of rules on social gatherings appeared to have "seriously dented" any prospects of short-term recovery.

Director David Lonsdale told BBC's Good Morning Scotland programme: "We have just had the worst December since our records began 22 years ago. Last year was a very difficult year as well."

He added the situation was especially frustrating as retailers have spent "a fortune" implementing physical distancing and hygiene measures.

And he called for further financial support from the Scottish government, especially in relation to business rates, as the new financial year approaches.

Mr Lonsdale added: "It was a blue Christmas for retail and, with shopkeepers missing out on much of the golden trading quarter, the pressure on those businesses is reaching boiling point."

'Cautious optimism'

KPMG head of retail, Paul Martin, said that throughout 2020, non-food retailers had borne the brunt of the pandemic.

He added: "2021 will undoubtedly be one of the most challenging years ever for Scotland's retail sector, but there is some light at the end of the tunnel for the businesses with adequate cash flow and a focus on adapting alongside evolving consumer behaviour.

"We're not out of the woods yet, but we can at least hold on to some cautious optimism that a vaccine rollout may result in a gradual increase in consumer spending and footfall."