Brexit deadlock blamed for drop in Scottish retail sales

Retail sales in Scotland dropped for the fifth month in a row, with experts suggesting the Brexit impasse was keeping wallets and purses firmly closed''.

Scottish sales for September decreased by 2.3% on a like-for-like basis compared to the same month last year when they had fallen by 0.2%, according to the monthly SRC-KPMG monitor published on Wednesday.

A separate measure examining total sales in Scotland last month fell by 1.9%, compared with a 0.9% increase in September 2018.

Leona Gray manages Dundee store Kobi Karpets, and has recently seen the biggest drop in footfall in nearly two decades with the business.

"In 19 years I've never seen it quite as bad as this. It's been a really big jump, our fitting book isn't full," she said.

"We're usually jam packed. It's so frustrating, we've simply not got the customers we used to have."

Ms Gray agrees Brexit uncertainty is a factor and fears her business could close if a resolution isn't found.

"If we're not bringing the money in we're not really working, it could affect our future."

It is the fifth successive month of shrinking sales, according to the Scottish Retail Consortium (SRC).

Total non-food sales dropped by 5.4% compared to September last year when they fell by 1.4%.

When adjusted for the estimated effect of online sales, total non-food sales decreased by 5.3% in September versus September 2018, when they had stayed flat.

The SRC's head of policy and external affairs Ewan MacDonald-Russell said that an urgent Brexit resolution'' was needed ahead of the vital Christmas trading period.

He added: September proved little relief for retailers as shoppers shunned high streets to focus on necessities.

Food sales remained solid with retailers noting summer favourites such as strawberries continued to be enjoyed.''

Mr Russell continued: However, the real concern comes in non-food with a 5.4% fall.

Electronics, homeware and beauty products all suffered from disinterested shoppers, whilst clothing sales were hampered by shoppers choosing summer discounts over autumnal ranges due to the warm weather.

It's indisputable consumers are holding back from serious spending commitments and it's difficult not to conclude the impasse over the UK's exit from the EU is a reason nervous shoppers are keeping their wallets and purses firmly closed.

To prevent life on the high street becoming even harder an urgent Brexit resolution is needed ahead of the vital Christmas trading period.''

Total food sales increased 2.3% versus September 2018, when they had increased by 3.7%.

KPMG's UK head of retail Paul Martin said that while food sales had helped slow the rate of decline the trend in non-food categories was one of long-term decline''.

He warned that the next few months could be make-or-break'' for many of Scotland's most high-profile brands.

Mr Martin added: September's results reflected the overwhelmingly challenging conditions facing Scotland's high streets.

Once again, food sales have helped to slow the rate of decline, with 2.3% total growth, but the trend in non-food categories is one of long-term decline.

There's clear evidence that uncertainty - both politically and economically - is impacting consumer confidence with shoppers choosing to slim down unnecessary purchases and focus on the essentials.

The next few months could be make-or-break for many of Scotland's most high-profile brands.'

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