September was the worst month in 15 years for Scottish retailers as shoppers hit the streets but failed to splash their cash.
Total Scottish sales decreased by 2.9% compared with September 2013, which was the weakest performance on record, excluding Easter distortions, according to research from the Scottish Retail Consortium (SRC).
Researchers behind the SRC-KPMG Scottish Retail Sales Monitor blamed mild weather and the Scottish referendum for distracting people from shopping.
David McCorquodale, head of retail at KPMG, said: “A nation gripped by politics and blessed with unseasonably warm weather shunned the high street in September.
“There can be little doubt that the engagement of the country in the referendum debate and the uncertainty surrounding the outcome of the contest cast a shadow over the spending of the Scottish consumer in the first half of the month and impacted the value of sales, despite the high footfall experienced by Scotland’s high streets.
“The shadow cast by the September sunshine also affected fashion and footwear retailers looking to move autumn collections.”
The SRC figures showed that fashion sales – including autumn boots and coats – was the worst performing category in the month. Food sales were also down 2.4% down on the same month last year, as supermarkets compete to drive down prices.
“Whilst this month’s sales figures set some weakest performance records, I see this as more of a disappointment for retailers battling against circumstances rather than a trend,” said Mr McCorquodale.
“There’s no denying that the continued decline in food sales is reflected in the challenges facing the grocery sector up and down the UK. Fashion and footwear retailers suffered in the rest of the UK from warm weather but Scotland’s worse performance was probably exaggerated by other distractions.”
David Martin, Head of Policy and External Affairs, Scottish Retail Consortium, said that while the month was “challenging” there was already some encouraging signs for retailers in the run up to Christmas.
He said: “September was a challenging month for retailers with a combination of factors contributing to the weakest sales performance since January 1999, excluding Easter distortions. Despite improved levels of footfall due to the Ryder Cup and other events demand remained weak for fashion items particularly boots and coats. The intense competition in the grocery market, whilst benefiting Scottish consumers through lower prices, continued to have an impact on sales.
“Despite the testing environment last month there are encouraging signs for the industry as the build up to Christmas begins.
“As we approach Christmas, the search for talented seasonal staff has begun, to support the extra demand from shoppers. A large proportion of these seasonal roles will turn into permanent positions; proving that this time of year is great for those looking to begin a career in retailing.”