THE value of Scottish retail sales in June was down by 0.5 per cent on the same month of last year, the latest industry figures show, with squeezed household incomes cited as a key factor.

Non-food sales value in Scotland in June was down by more than four per cent on the same month of last year, according to the figures published today by the Scottish Retail Consortium (SRC). Poor weather was also cited as a drag on sales.

The value of food sales in Scotland last month was up by 4.2 per cent on June 2016, but Ewan MacDonald-Russell, head of policy and external affairs at the SRC, said: “It’s clear that growth derives from cost pressures from imported goods, resulting from the fall in the value of sterling.”

The pound’s tumble in the wake of the Brexit vote has fuelled inflation. Annual UK consumer prices index inflation dipped to 2.6 per cent in June, official figures showed yesterday, but this is nearly nine times the 0.3 per cent rate for May last year, ahead of the Brexit vote. This inflation surge has led to a renewed real-terms fall in wages, and hit UK growth.

Mr MacDonald-Russell said it had been “a disappointing June for retailers as nervous customers continue to postpone discretionary spending due to squeezed household incomes and worries about the economy”.

He added: “Our concern is inflation on essential goods is now forcing cash-strapped consumers to put off discretionary spending, which exacerbates the pressure on shops.”

Craig Cavin, head of retail in Scotland at accountancy firm KPMG, said: “Scottish retail’s struggle continued in June, and the figures paint a familiar picture - strong food sales negated by poor non-food performance.

“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.”

Mr Cavin flagged the impact of poor June weather, declaring: “We should know not to rely on summer sunshine in Scotland, but a gloomy month has taken its toll. The effect of Scotland’s wettest June in over a century was felt across the industry.”