Scottish retail suffered its worst Christmas trading ever due to the coronavirus pandemic, a new report has revealed.

The Scottish Retail Consortium (SRC) has released its Retail Sales Monitor for December 2020 in association with KPMG.

Key points are:

  • In December, Scottish sales decreased by 15.6% on a like-for-like basis compared with December 2019, when they had decreased by 1.5%*. This is below the 3-month average decrease of 11.0% and the 12-month average decrease of 11.3%.
  • Total sales in Scotland decreased by 16.6% compared with December 2019, when they had decreased by 0.6%*. This was below the 3m average decline of 12.2% the 12m average decline of 12.8%. Adjusted for deflation, the decrease was 14.8%.
  • Total Food sales increased 3.3% versus December 2019, when they had increased by 2.4%*. December was below the 3-month average growth of 4.1% and the 12-month average growth of 3.8%. The 3-month average was below the UK level of 7.3%, while the 12-month average was below the UK’s levels of 5.4%.
  • Total Non-Food sales decreased by 33.4% in December compared to December 2019, when they had decreased by 3.1%*. This was below the 3-month average decline of 25.8% and the 12-month average decline of 26.5%.

Adjusted for the estimated effect of Online sales, Total Non-Food sales decreased by 17.7% in December versus December 2019, when they had increased by 1.5%*. This is below the 3-month average decline of 10.2% and the 12-month average decline of 14.4%. Those are lower than the UK’s 3m average decline of 1.5% and 12m Total average decline of 5.0% respectively.

David Lonsdale, Director, Scottish Retail Consortium, said: “Scotland’s retailers are in the depths of the biggest crisis in two decades after the worst ever December trading. Retail sales fell in real terms by 15 percent, the worst since June, as lockdowns at the start and end of the month snuffed out hopes of a late rally to end the year.

“Food sales remained positive but recorded their second weakest monthly performance since the Spring, underwhelming considering the lack of competition from eateries. Non-food sales from stores slumped dramatically, by over a third compared to the same period the previous year. Closed stores for much of the month coupled with the loss of the post-Christmas discounting period clobbered non-food shops, removing the final chance for them to tempt customers and shift unsold stock. Online sales fared well and blunted the decline somewhat for non-food categories. 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.

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“It isn’t just down to weak Christmas trading. Across 2020 sales fell massively – far and away the worst figures SRC has reported during twenty two years of the survey. This fall can be clearly attributed to the repeated lockdowns and weak economy; and the bleaker picture compared to the UK as a whole shows how retail has suffered from longer lasting lockdowns and restrictions. Tough restrictions may be right to tackle Covid – but need to be matched with support for the industry – and so a firm commitment in the Scottish Budget to further business rates relief is a must. Ministers need to look hard at how they can lift the burden on an industry which has been reduced to its knees by the current crisis, as even when we emerge from lockdown shops will be unable to trade at capacity due to physical distancing and caps on shoppers in stores.”

Download the full report here

 

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