Scottish retail sales contract 1.1% in first quarter of 2020

Scotland’s chief statistician has released statistics showing that the amount of retail goods bought in Scotland fell by -1.1% during January to March 2020.

Scottish retail sales contract 1.1% in first quarter of 2020

Over the same period, Great Britain as a whole saw a -1.6% contraction.

The amount spent on retail sales (not adjusted for inflation) contracted by -1.1% during January to March 2020. Over the same period, Great Britain as a whole saw a -1.4% contraction.



Compared to the same time last year, the amount of retail goods bought in Scotland contracted by ‑1.7%. In Great Britain as a whole over the same period, sales contracted by -1.8%.

The Scottish Government has been investigating ways to make faster use of available data to allow more up to date monitoring of the impact of the COVID-19 crisis on the economy and to help policymakers and economic forecasters.

The two strands to this work are a Monthly Business Index (MBI) and Monthly GDP estimates (mGDP)

As part of this work, we are proposing to change some of our normal outputs, and we shall consult users in due course.

Proposals include that the Retail Sales index be amalgamated with the MBI and mGDP and suspended as a separate release until further notice, to free up resources to work on the estimates for the whole economy.

David Lonsdale, director of the Scottish Retail Consortium, commented: “These figures lay bare how difficult things were for the Scottish retail industry even ahead of the onslaught of the coronavirus crisis. That’s why the support the industry has received from the UK and Scottish Government’s on rates relief, jobs protection, and grants has been vital.

“Nonetheless, it also demonstrates why those retailers unable to trade are finding things so very difficult. We are working to ensure that retailers who are currently unopen are prepared and able to trade safely and get Scotland’s economy moving again, once they are permitted to open.

“With the country facing months of economic uncertainty and the prospect of rising job losses, many customers have cut back on spending. A speedy economic recovery is key to rebuilding consumer confidence, but businesses cannot do it alone. Government must be ready to take further measures to revive consumer demand after lockdown has lifted.”

Euan Murray, relationship director at Barclays Corporate Banking, Scotland, said: “The first quarter of 2020 has brought some of the toughest conditions for retailers to contend with in recent memory. Despite the January sales, February’s inclement weather saw consumers holing up indoors, putting a curb on discretionary spending on the high street.

“The lockdown introduced in response to COVID-19 has also created incredibly tough conditions for retailers to contend with and the full force of this will be seen in the coming quarters. In March, consumers focused their spending on stockpiling the essentials over everything else with many supermarkets struggling to keep up with demand.

“Even with online sales benefitting, the knock-on effect to the supply chain has meant fulfilling orders is difficult while wider consumer spending has been cautionary due to the employment impacts of the pandemic.

“The current climate may accelerate the changes to the high street and retail landscape we were already witnessing.”

  • Read all of our articles relating to COVID-19 here.
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