Home / Knowledge / News / Retail sales back to reality after April blip
Retail sales back to reality after April blip
16
Jun '11
On a total basis, sales were down 1.1%, against a 2.4% increase in May 2010. This was the worst fall in total sales since the survey began in 1999. Like-for-like sales values were down 3.2% from May 2010, when sales had fallen 0.8%.

On a like-for-like basis, food sales dropped below their year-earlier level after April's strong growth and non-food sales were also well down on a year ago. In the cold wet weather, consumers' underlying uncertainty about jobs and incomes resurfaced, hitting clothing, footwear and homewares. Big-ticket purchases suffered most and were often promotion-led.

As in the UK, both like-for-like and total sales were much worse in May. Consumer confidence remains weaker in Scotland than in the UK as a whole.

Fiona Moriarty, Director of the Scottish Retail Consortium, said:
"After the combination of unusually sunny weather, Easter and the extra bank holiday in April which boosted spending, this is a return to reality for Scottish retailers. It's clear that April's good figures were a blip, with May producing the worst fall in total sales values since we began this survey in 1999.

"People remain nervous about the economy and their personal finances. Non-food sales in particular are struggling and shoppers don't have the confidence to spend on big-ticket items. Even heavy discounting has failed to help spending on homewares, including furniture and floor coverings, as consumers conserve their cash for more immediate essentials. Customers who bought summer shoes and clothing during the heat of April have reined back their spending and turned to their winter wardrobes again during the May wash-out.

"The tough outlook for the high street means shoppers stand to benefit from increased competition and plenty of special offers, but the outlook for retailers remains challenging."

David McCorquodale, Head of Retail in Scotland, KPMG, said:
"Despite retailers enjoying a strong April, boosted by Easter, the Royal Wedding and sunshine, unfortunately we can see that sales have dipped again, in line with a longer term trend. The results for May show total sales were down by 1.1 per cent, which is the largest drop since records began.

"Like-for-like sales declined against May last year by 3.2 per cent and while last year's figures may have benefited from better weather and the build-up to the World Cup, we are most certainly seeing a continuation of a worrying trend for 2011. Across all categories, footfall and volumes are down as consumers continue to be wary as to how they spend their reduced disposable income. In non-food items in particular, where like-for-like sales fell by almost 5 per cent, despite being flattered by the recent VAT increase, necessity and the search for a bargain have been the main themes. Many retailers have responded with promotions but as they themselves battle with cost inflation and upward rent reviews, the squeeze on margins and lower volumes is negatively affecting their own cash flows.

"I fear a tough road ahead for the remainder of the year where more than a long, hot summer is required."

The Scottish Retail Consortium's parent association is the British Retail Consortium (BRC) based in London and Brussels.

Scottish Retail Consortium


Must ReadView All

Indian textile & apparel exports fall 13% in Jan 2018

Textiles | On 17th Feb 2018

Indian textile & apparel exports fall 13% in Jan 2018

A decline of 13 per cent year-on-year has been observed in the...

Brazilian cotton prices move up in first fortnight

Textiles | On 17th Feb 2018

Brazilian cotton prices move up in first fortnight

Cotton prices rose in Brazil in the first fortnight of February, as...

Courtesy: OrganoClick

Textiles | On 17th Feb 2018

OrganoClick introduces OrganoTex for water repellency

OrganoClick has introduced OrganoTex, a textile impregnation product...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.0%
No
13.0%
Skip
17.0%

Total Votes: 100

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.0%
No
30.0%
Skip
7.0%

Total Votes: 100

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.0%
No
9.0%
Skip
3.0%

Total Votes: 100

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.0%
No
8.0%
Skip
9.0%

Total Votes: 100


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search