YEAR-ON-YEAR growth in the value of retail sales was much weaker in Scotland than UK-wide in May, industry figures reveal, with poorer consumer confidence north of the Border and the buoyancy of London cited as reasons for this under-performance.
The figures, published today by the Scottish Retail Consortium (SRC), show that the total value of Scottish retail sales last month was up 0.8% on May 2012.
This is way adrift of 3.4% year-on-year growth in UK retail sales value in May, revealed in figures published this month by the British Retail Consortium (BRC).
However, it is ahead of the 0.3% average year-on-year growth rate for the value of Scottish retail sales over the latest 12 months.
The value of non-food sales in Scotland in May was up just 0.2% on the same month of last year, the SRC figures show, but this was the best performance in this category since December.
The SRC noted that, with the BRC having calculated UK shop prices in May were 0.1% lower than a year earlier, its latest figures signalled 0.9% year-on-year growth in sales volumes north of the Border last month.
The BRC has calculated annual food price inflation slowed to 2.4% in May. It has put annual UK non-food price deflation at 1.5%.
Food sales value in Scotland in May was up 1.5% on a year earlier. Given food price inflation, this implies a year-on-year fall in sales volumes in this category.
David McCorquodale, head of accountancy firm and survey sponsor KPMG's UK retail practice, declared that May's sales figures "reflect the relationship between retailers and the Scottish consumer".
He said: "On the positive side, total sales grew by 0.8%, exceeding the average growth for the last 12 months."
And he calculated that, excluding the Christmas periods, the year-on-year movement in the value of non-food sales last month was the best since April 2011.
However, Mr McCorquodale added: "With the weather remaining mixed, the cold truth is Scottish sales are trailing behind the UK's, which this month saw a healthy 3.4% (year-on-year) boost to sales. Total food sales (in Scotland) grew by less than inflation and non-food sales growth was a mere 0.2%, driven by electricals.
"Yes spending is up, but only just, and it remains an uphill struggle for retailers who are fighting over every pound that enters the tills."
He forecast tough times ahead.
Mr McCorquodale said: "This battle (by retailers) for their share of consumer wallets will remain fierce, and retailers must keep a watchful eye on their own margins as they try every form of promotional activity to secure sales.
"Perhaps a few weeks of summer weather will make a difference, but I believe the majority of retailers face a hard-fought campaign to persuade consumers to part with their hard-earned cash."
Asked about Scotland's continuing under-performance on the retail sales front, compared with the UK as a whole, SRC head of policy David Martin said that consumer confidence had been weaker north of the Border for around two years.
And, citing the positive influence of London on the UK-wide figures, he added: "In terms of the retail sector, in terms of consumer confidence, London is certainly weathering the difficult economic conditions better than anywhere else in the UK."
He noted lower shopping footfall figures for Scotland.
He also cited poorer weather in Scotland in recent months than in other parts of the UK.
SRC director Fiona Moriarty said: "While May ushered in some welcome weather more suited to spring after the unseasonably chilly preceding months, conditions were still volatile.
"This led to a mixed month for the fashion category: the first signs of sunshine fuelled demand for spring and summer ranges, but changes in temperature made for stop-start progress across the month."
The value of Scottish retail sales had been down 2.1% year-on-year in April, but the SRC pointed out last month that this fall reflected the fact that the Easter boost to trading was earlier this year than last.
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