Shopping saw modest return in August, but cost-of-living test is yet to impact

WORRIES about “galloping household energy bills” weren’t enough to keep shoppers at home in August and Scotland saw a “modest improvement” in shopper footfall as a result, according to the Scottish Retail Consortium.

The return of holidaying, social occasions and tourism helped slow the decline in shopper footfall since the pandemic by 1.7 percentage points in August, compared to July.

But Scotland is still trailing every nation and region of the UK for the return of shopper footfall since the start of Covid-19. Out of 13 UK nations and regions headed by South West England, the East Midlands and North West England, Scotland ranks last, with shopper footfall still 14.8% below pre-pandemic levels and below the UK average decline of 12.4%.

“Despite the improvement, visits to stores remain well down on pre-pandemic levels and Scotland continued to lag the 12 other parts of the UK surveyed for a fourth month in a row,” explained SRC director David Lonsdale.

This was “worrying,” he said, given inflationary headwinds and their likely impact on consumer sentiment and spending power. This was especially the case in the lead up to the final months of the year, which is traditionally the industry’s “crucial golden trading quarter.”

Mr Lonsdale said early action was needed from both the new Prime Minister the First Minister’s programme for government, which is published at the start of every September and sets out the Scottish Government’s plans for the year.

Both politicians would need to work to “protect living standards,” help retailers keep shop prices down and help retail destinations rebound.

“After all, much of our wider economy is ultimately dependent on what happens to consumer spending,” Mr Lonsdale said.

Most retail destinations, especially those in Edinburgh and Glasgow, felt the modest improvement in shopper footfall in August, the SRC said. In Glasgow, footfall improved two percentage points in August 2022 to11.6% below pre-pandemic levels.

Shopping centres, though, continued to struggle, with footfall in August 20.7% below pre-pandemic levels and down from 19.2% in July.

Andy Sumpter, retail consultant for Europe, the Middle East and Africa at retail systems specialist Sensormatic Solutions, said retailers would now be looking ahead to the Autumn – and retail’s golden quarter of Christmas trading – with “an air of caution.”

As the cost-of-living crisis continues, retailers are waiting to see what packages of support will be offered to consumers to “ease the burden on household budgets” once the new Prime Minister is announced, he said.