Total retail sales fell in Scotland last month, with figures published today coming in the same week as research showed footfall was was also down on the high street over the summer.
The Scottish Retail Consortium (SRC)-KPMG Scottish retail sales monitor for July reported a summer slip, with total sales down 0.3% compared with July 2018, when they had increased by 1.1%.
Adjusted for deflation measured at 0.1% by the BRC-Nielsen Shop Price Index (SPI), July sales decreased 0.2%.
Total food sales increased 1.8% against July 2018, when they had increased by 5.6%. This is above the three-month average of 1.0% but below the 12-month average of 2.7%.
The three-month and 12-month averages are above the UK’s levels of -0.3% and +1.8% respectively.
Total non-food sales decreased by 1.9% in July compared to July 2018, when they had decreased by 2.4%.
Adjusted for the estimated effect of online sales, total non-food sales decreased by 0.7% in July versus July 2018, when they had decreased by 0.5%.
David Lonsdale, director of the Scottish Retail Consortium, said: “The value of Scottish retail sales edged down last month, admittedly after a tough comparable July in 2018.
“The dip was at a much more modest rate than witnessed the previous month and comes after disappointing footfall figures unveiled earlier this week.
“Shoppers have kept a firm grip on their purses and wallets of late, with July rounding off an underwhelming three months for the industry. Indeed, over the past year as a whole retail sales have essentially been flat.
“Discounting was more prominent during the month, to the benefit of consumers but at a cost to retailers in terms of their profit margins”.
He said bright spots in non-food categories were sales of larger electrical goods and furniture which had a reasonable month, while clothing, footwear, and health and beauty categories all struggled.
He added: “The coming few months are expected to be dominated by the spotlight on Brexit and big fiscal decisions in the UK and Scottish budgets.
“Retailers will be hoping policy-makers keep consumer confidence and household disposable incomes uppermost in their minds over the next few months.”
More than 50 large UK retailers this week wrote to the Chancellor of the Exchequer to warn of the dangers of a no-deal Brexit, which they said ‘would place a considerable strain’ on the sector. In the letter they called for an overhaul of the business rates system.
