Analysis by the Scottish Retail Consortium (SRC) estimates shops in Scotland have missed out on £5.8bn of retail sales during the past two years of the pandemic.
The analysis, using Scottish Government and SRC data, shows the scale of the retail sales and revenues that have been lost compared to the year prior to the coronavirus crisis starting.
Separate figures published earlier this week by SRC and KPMG showed retail sales in Scotland have yet to climb their way back to pre-pandemic levels. Shopper footfall was down 23% in December, with one in six shops lying vacant.
During the past two years large swathes of the industry were prevented from opening stores to customers during Scotland-wide and local lockdowns. The affected stores were shuttered for at least 220 days as a result.
The entire industry has been unable to trade at capacity for the majority of the past 22 months due to restrictions including physical distancing.
SRC’s analysis of lost retail sales during 2021 and 2020:
YEAR |
CASH VALUE OF ANNUAL RETAIL SALES (2019) |
% DECLINE IN RETAIL SALES |
LOST SALES VALUE |
2020 |
£23.1bn |
12.8% |
£2.96bn |
2021 |
£23.1bn |
12.3% |
£2.84bn |
£5.8bn |
Therefore, the SRC is proposing a five-point plan to support the sector’s revival:
- A concerted effort to encourage the safe return to workplaces of public and private sector office workers once the work-from-home order is rescinded early next month.
- A plan to encourage shoppers back to city centres including consideration of discounted public transport and parking or a high street stimulus voucher as Northern Ireland has implemented.
- Grants for shops as Wales has implemented this week.
- Scrap the cap on business rates relief for retailers.
- Publish the proposed Scottish Retail Strategy.
SRC director David Lonsdale said: “Without help, shops across the country will face intolerable burdens.
“Our five-point plan calls for immediate grant aid for shops, as is happening in Wales, followed by scrapping the cap on retailers’ business rates relief.
“When it’s safe to do so retailers want to see a concerted effort to encourage shoppers back to town and city centres; which should be informed by the success of the Northern Ireland voucher scheme.”
The retail industry is Scotland’s largest private sector employer, providing 230,000 jobs directly with thousands more in the supply chain.
The industry accounts for one in every eight pounds of private sector commercial investment and 13% of all new firms formed each year.
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