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Published
Jul 20, 2017
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Scottish retail sales ‘disappointing’ as consumers cut discretionary spending

Published
Jul 20, 2017

June saw Scottish shoppers continue to postpone discretionary spending due to squeezed household incomes and worries about the economy, leading to a 0.5% drop in total retail sales during the month.



According to the latest Scottish Retail Consortium-KPMG retail sales monitor, the decline was better than in June 2016, when total retail sales fell by 1.4%. Adjusted for deflation, measured at 0.3%, June sales fell by 0.1%.

Total food sales grow strongly by 4.2% compared with a 0.1% increase a year earlier, but total non-food sales accelerated their decline, falling by 4.2% in June compared with a decrease of 2.6% in June 2016.

“Even when the positive impact of online sales are included, non-food sales were down -1.2 per cent across the last three months,” said Ewan MacDonald-Russell, Head of Policy & External Affairs at the Scottish Retail Consortium.

Craig Cavin, Head of Retail in Scotland at KPMG, added: “The drop in non-food sales, down 4.2 per cent compared to last year, is becoming something of a bleak trend, whilst poor sales in summer ranges and the late arrival of some discounts put a dent in clothing figures. Elsewhere in non-food, the dreich weather impacted on sales of outdoor furniture.

“We should know not to rely on summer sunshine in Scotland or risk disappointment, but a gloomy month has taken its toll nonetheless. The effect of Scotland’s wettest June in over a century was felt across the industry.

“Phones, tablets, games, and health and beauty products were a ray of sunshine through the clouds, but retailers will look for non-food performance to pick up if the sector is to make gains.”

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