SCOTTISH retail sales value in July was down by 1.8 per cent on the same month of last year, industry figures show, with unsettled weather, food price deflation and possible post-Brexit vote blues cited.
The Scottish Retail Consortium (SRC), publishing its latest monthly figures today, highlights the dampening impact of the weather on demand for clothing and footwear north of the Border in July.
The fall in the value of retail sales value in Scotland was in contrast to a corresponding 1.9 per cent year-on-year rise in the UK as a whole in July. This continues a general pattern of significantly weaker year-on-year movements in sales value north of the Border in recent times, with the SRC having noted the boost to the overall UK figure from a stronger housing market and economic performance in London and south-east England.
David McCorquodale, head of accountancy firm and SRC survey sponsor KPMG’s UK retail sector practice, said: “Whilst the south of the UK benefited from a longer heatwave, Scottish weather was more unsettled and, consequently, footwear and fashion sales were more subdued and took a greater degree of promotions to shift.”
SRC director David Lonsdale said: “It is possible that more prolonged post-Brexit blues in Scotland may perhaps have affected consumer confidence and been a contributing factor to the dip in retail sales. However, in reality, thus far little has materially changed for most households in the wake of the referendum.”
Mr McCorquodale said: “It’s far too early to call the Scottish sales figures for July a barometer of the Brexit vote impact. The consequences, good or bad, will take some time to be negotiated and even longer to be felt in the consumer’s purse. Rather, the weather was, as ever, the driver across the board and deflation was the co-driver in the food segment.”
The SRC figures show the value of food sales in Scotland in July was down 1.6 per cent year-on-year. In June, the value of food sales north of the Border had been up by 0.1 per cent on a year earlier.
The value of non-food sales in Scotland in July was down by 1.9 per cent on the same month of last year.
Mr Lonsdale said: “Scotland's retailers remain open for business and the EU poll, grey weather and the profound structural, economic and regulatory changes affecting the industry are not deterring retailers from their relentless pursuit of delivering for customers day in, day out.
“However, these figures do reinforce the need for the Scottish Government to deliver tangible action in their upcoming Scottish Budget to assist consumer confidence and to help retailers become more productive and competitive.”
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