RETAIL: Shops React to Sales Gloom
Listed under: News
Published: Wednesday, April 23, 2008
New figures released by the Scottish Retail Consortium (SRC) suggest retailers in the region are feeling the pinch as economic fears persist. The organisation's Retail Sales Monitor, produced in association with the University of Edinburgh and the Centre for the Study of Retailing in Scotland, reports that like-for-like sales grew just 1.6% on last year. The same period in 2007 saw growth of 6.6%.
“A sales slowdown has definitely taken hold in Scotland,” says Fiona Moriarty, director of the SRC. “What little growth there was came from food sales. Only the Easter boost stopped non-food sales actually falling compared with a year ago with clothing, footwear and homewares suffering some of the worst performances in recent times. Even sales events and price-cutting failed to help much. This is a clear indication that nervous customers, short of spare cash, are reining in spending on non-essentials.”
However some craft retailers have yet to feel the negative effects reported by the SRC. “I'm planning for the fact that sales might drop but I've not seen any evidence of that yet,” says Pat Robbins of Rainbow Fabrics & Threads in Inverurie. “I'm not ordering so much over the next few months but so far between January and February we're up on last year.” Pat believes the social and practical aspects of crafting might cushion retailers amid an economic downturn. “It's not like deciding whether to buy a new handbag. When people make things in our classes they enjoy the sociable aspect and have a finished product at the end that they can give as a gift. I think those needs will still be there despite hardships.”
“A sales slowdown has definitely taken hold in Scotland,” says Fiona Moriarty, director of the SRC. “What little growth there was came from food sales. Only the Easter boost stopped non-food sales actually falling compared with a year ago with clothing, footwear and homewares suffering some of the worst performances in recent times. Even sales events and price-cutting failed to help much. This is a clear indication that nervous customers, short of spare cash, are reining in spending on non-essentials.”
However some craft retailers have yet to feel the negative effects reported by the SRC. “I'm planning for the fact that sales might drop but I've not seen any evidence of that yet,” says Pat Robbins of Rainbow Fabrics & Threads in Inverurie. “I'm not ordering so much over the next few months but so far between January and February we're up on last year.” Pat believes the social and practical aspects of crafting might cushion retailers amid an economic downturn. “It's not like deciding whether to buy a new handbag. When people make things in our classes they enjoy the sociable aspect and have a finished product at the end that they can give as a gift. I think those needs will still be there despite hardships.”
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