SRC reveals “disappointing” June for struggling retail sector

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SRC

The Scottish Retail Consortium (SRC) has reported a “disappointing” June for the country’s retailers, as total sales drop 0.5 per cent.

According to the latest SRC-KPMG retail sales monitor, overall food sales were up 4.2 per cent, but this was offset by non-food sales dropping by the same figure.

Poor weather alongside inflationary pressures have been attributed to the fall in sales, as the renewed real-terms wage decline put shoppers off buying non-essential goods.

“Scottish retail‘s struggle continued in June, and the figures paint a familiar picture – strong food sales negated by poor non-food performance,” KPMG Scotland head of retail Craig Cavin said.

READ MORE:  “Tens of thousands” of jobs at risk in Scottish retail sector

“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.”

SRC head of policy and external affairs Ewan MacDonald-Russell added 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”.

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

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