Energy savvy shoppers snapping up air fryers and heated clothes airers helped push Scottish retailers to their best monthly performance in two decades. Total sales in Scotland increased by 11.3% in December compared to the year before, the Scottish Retail Consortium said on Wednesday, but when adjusted for inflation the year-on-year figure was slashed to just 3.9%.
David Lonsdale, director of the Scottish Retail Consortium, said after two years of Covid misery, retailers were “finally able to toast sparkling Christmas sales as 2022 finished with a flourish” but warned they were “far from being out of the woods yet” because of the pandemic’s economic legacy and high inflation.
“December’s retail sales shone compared to recent months, and the comparable month the year before, as shoppers returned to spending and took advantage of the first Christmas in three years without pandemic-era curbs or instructions to shun socialising,” he said.
With the cost of gas and electricity having soared, consumers hungry to save cash on their energy bills this winter helped push up sales north of the border. Sales of air fryers, slow cookers and heated clothes airers performed well, the consortium’s analysis said, as did blankets and bedding.
And the cold snap in December, which the Met Office recorded as the only colder than average month last year – and at its coldest saw temperatures plunge as low as -17.3C in Braemar, Aberdeenshire – helped push sales of winter coats and boots. Total food sales increased by 11.5% compared to December 2021, when they had grown by just 1.2%, and total non-food sales rose by 11%, the consortium’s Retail Sales Monitor figures said.
Mr Lonsdale said: “Retail sales grew by almost 4% in real terms, the highest in three years, and at a much faster rate than during the second half of 2022. In gross terms, taking into account inflation and excluding Covid-era distortions, this was the best monthly performance in 20 years.”
But, despite retailers seeing good sales, Paul Martin, UK head of retail at KPMG, said the the volume of goods people were buying was significantly down compared to 12 months ago, which could largely be put down to goods costing more. He said: “With Christmas behind us, retailers are facing a challenging few months as consumers manage rising interest rates and energy prices by reducing their non-essential spending, and industrial action across a number of sectors could also impact sale.
“The strong demand across certain categories that has protected some retailers will undoubtedly fall away so we can expect high street casualties as we head into the spring. The first half of the year will be tough for retail and a case of survival of the fittest, but we expect to see demand increase as 2023 progresses.”
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