Slow return to retail normality continues, says Scottish Retail Consortium report.
Key points from the SRC-KPMG Scottish Retail Sales Monitor for May 2021 are as follows:
- In May, Scottish sales increased by 6.8% on a 2 year like-for-like basis compared with May 2019, when they had decreased by 3.4%. This is above the 3-month average decrease of 3.7% and below the 2019 average decrease of 0.8%.
- Total sales in Scotland decreased by 3.6% on a 2-year basis compared with May 2019, when they had decreased by 3.1%. This was above the 3m average decline of 11.8% and below the 2019 average decline of 0.2%.
- Total Food sales increased 2.5% on a 2-year basis versus May 2019, when they had increased by 0.5%. May was below the 3-month growth of 4.9% and the 2019 average growth of 2.4%. The 3-month average was below the UK level of 10.3%.
- Total Non-Food sales decreased by 8.7% in May on a 2-year basis compared to May 2019, when they had decreased by 6.1%. This was above the 3-month average decline of 25.8% and the 2019 average decline of 2.4%.
- Adjusted for the estimated effect of Online sales, Total Non-Food sales decreased by 12.1% in May versus May 2019, when they had decreased by 5.6%. This is below the 3-month average decline of 11.2% and the 2019 average decline of 1.4%. This was lower than the UK’s 3m average growth of 7.5%.
Ewan MacDonald-Russell, Head of Policy & External Affairs, Scottish Retail Consortium, said: “Retailers continue to benefit from the relaxation of lockdown restrictions and the return to shops with May showing the best retail sales figures in 15 months. However, despite evidence of pent up demand coming through sales still failed to break into positive territory, remaining below the comparable May 2019 figures.
“Food sales remain in growth, albeit slightly reduced as eateries reopen. Online sales fell back with customers returning to stores, but there wasn’t enough of a high street boost to push the figures into positive territory. Fashion and beauty sales continue to struggle, not helped by the dreich May weather and lack of clarity over summer holiday plans which discouraged customers from refreshing wardrobes.“Hopefully retail is now on a path back to growth – however it’s clear the industry is not yet out of the woods, and with little sign that the lost retail sales of the past 15 months will be recouped. With sales still negative and the cost of operating under the current restrictions onerous retailers will continue to struggle to be profitable. In that context early sight of the roadmap to removing restrictions and encouraging workers safely back to city centres is a priority for the industry."
Additional Guidance and Resources
- All eyes on shop as they reopen, says new BRC report
- Re-examining Retail: What do customers expect in 2021?
- ’Optimism is in the air’, says new BRC report
- Footfall down ’significantly’, says new BRC report
- ’Sales improve as outlook brightens’, says BRC report
- Bira: Reform business rates to ’level up playing field’
- Wales extends rates relief for another year
- Bira ’broadly welcomes’ Budget support for indie retailers
- Abolish business rates until 2022, says Bira
- Bira fights for indie retailers in meeting with business minister
- Indies want to help take economy forward, Bira tells new Business Minister
- Five-point plan to save indie retail sector gets Bira’s support