Shopping vouchers and free parking are among ideas retail bosses in Scotland believe may help the nation’s shops as new figures show sales still languishing nearly one-tenth below pre-pandemic levels.
Trade body the Scottish Retail Consortium (SRC) has highlighted a £145 million stimulus scheme in Northern Ireland, where every adult is getting £100 to spend on high streets, as a possible model for this country to adopt as a way to boost stores.
Jersey and Malta have both introduced similar schemes to pep up their economies during Covid-19.
A voucher scheme could play a valuable role in enticing shoppers back and getting our economy firing again.”
David Lonsdale, Scottish Retail Consortium.
SRC wrote to Scottish ministers about the idea in December, and again in SRC’s post-Scottish Budget paper earlier this year.
During the last Holyrood election campaign, the group praised a Scottish Labour Party proposal for a shopper stimulus scheme as a means of aiding high streets and stores which have been left reeling by the pandemic.
SRC director David Lonsdale said: “The pandemic and the associated government lockdowns and restrictions have weighed on consumer demand.
Footfall down
“Shopper footfall is down by a fifth, shop vacancies have spiked, and Scottish stores have missed out on £4.5 billion of revenues over the past 18 months.
“Scotland’s shops will only survive with the patronage of the public.
“Retailers are playing their part in trying to tempt shoppers, but policymakers here need to think more creatively too about how they can reignite consumer confidence and entice Scots back to our retail destinations.”
He added: “This could be through temporary free parking or an advertising campaign to encourage people back to city centres, or a high street voucher scheme like Northern Ireland is introducing.
“A voucher scheme could play a valuable role in enticing shoppers back and getting our economy firing again, triggering additional spending by shoppers beyond the value of the voucher transaction and creating an even larger economic multiplier.”
SRC’s monthly barometer of the health of Scottish retailing shows total sales increased by 3.2% last month, compared with August 2020.
On a like-for-like basis, stripping out the impact of shops opening and shutting, sales increased by 3.4% year-on-year,
Food sales increased 0.5%, versus August 2020, with the non-food figure up 5.4%.
Momentum ‘dissipated’
Mr Lonsdale said: “August witnessed a further uptick in Scottish retail sales, compared to the admittedly sombre comparable month last year, albeit the performance was softer than earlier in the summer and much of the momentum dissipated.
“The ending of physical distancing and removal of the cap on numbers allowed in-store a third of the way through the month failed to bring the anticipated boost, with retail sales still languishing almost a 10th below pre-pandemic levels.”
He added: “Fashion categories such as clothing, footwear and cosmetics were the standout performers, bolstered by the return of socialising and occasions such as weddings, along with staycations, the good weather, and the return to school.
“Other non-food categories saw sales wane, especially of larger items such as furniture, white goods, and electricals.
“Grocery sales nudged up a smidgeon, buoyed in part by BBQs as Scots took advantage of the good weather.
“However, this was the weakest growth in food since May, as eating out with friends and family became more prevalent.”
‘Discomforting’
“These figures are somewhat discomforting as we hurtle towards what is traditionally the crucial golden quarter of shopping in the lead-up to Christmas.
“The pressure on retailers to deliver a strong Christmas performance will only become more acute if a sustained increase in demand isn’t seen soon.
“This should prompt policymakers to consider what immediate action they could take to entice shoppers back and help consumer confidence and spending take wing.”
