Consumer spending across the UK has remained subdued in the past few months, with low confidence leading to small growth throughout the retail industry. However, there have been signs of increased spending in Scotland in the lead up to Christmas, with fashion in particular enjoying a boost during November.
Overall, sales increased by 1.6 per cent in Scotland last month when compared to last year’s drop of 1.2 per cent during the same period. Like for like sales also enjoyed a burst of growth, climbing by 0.6 per cent after last November’s plummet of 2.2 per cent.
This means that, when shop price inflation of 0.3 per cent is taken into account, total sales growth rebounded at a strong 2.0 per cent, giving hope to Scottish retailers that this Christmas will be significantly merrier than the last.
The Scottish Retail Consortium – KPMG Sales Monitor showed particularly strong growth in clothing and footwear, which experienced its best performance since July. Head of Policy at the Scottish Retail Consortium, David Martin, believes that this points towards a stronger drive to spend as Christmas approaches.
He says; “November’s figures strengthen the sense that many of us are still cautious and holding off on much of our seasonal spending until Christmas gets closer.
“After a subdued showing earlier in the autumn, fashion’s fortunes were reversed by growing demand for warm clothing and boots, making it the month’s best performing category.
“Elsewhere in non-food, much of the growth was driven by customers responding well to the deals and discounts ushered in by the Christmas countdown – retailers will be pinning their hopes on momentum picking up as we enter the last few weeks before the big day.”
Although total sales growth for Scotland remains lower than the UK average, the three month average for food sales climbed to the extent that the category is now performing above the national average.
November’s success in the fashion retailing industry also indicates that consumers are loosening the purse strings and seeking to make larger purchases for the Christmas party season – something which may well continue on to the Boxing Day sales and beyond.
KPMG Head of Retail, David McCorquodale, is optimistic that Scottish retailers will continue to reap the benefits of an upswing in consumer confidence as Christmas approaches. He also believes that multi-channel retailers will be the strongest performers this year.
He says; “Scottish consumers are stepping into Christmas with caution but from a position of greater confidence than last year.
“Despite consumers remaining cash-strapped from the longest recession on record, signs are that this Christmas will be better than last year and that those retailers who have invested smartly in their multi-channel capabilities will grab the share of it from those who haven’t.
“With Christmas falling on a Wednesday this year, the high street still has extra shopping days to benefit from when internet purchases can’t promise delivery before Santa.”
Will you be taking advantage of the extra shopping days on the high street this year, or do you prefer to prepare early and have all gifts purchased well in advance of Christmas Day?
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