THE value of retail sales in Scotland last month was down significantly on August 2014, in contrast to a marginal year-on-year rise in the UK as a whole, the latest industry figures reveal.
Figures published today by the Scottish Retail Consortium (SRC) show that the value of sales north of the Border in August was down by 2.4 per cent on the same month of last year. This was the steepest year-on-year fall since May, although the SRC cited tough comparative figures for August 2014.
David McCorquodale, head of accountancy firm and SRC survey sponsor KPMG’s UK retail sector practice, said: “High Street sales in Scotland were weak on all fronts during August, with very little glimmer amidst the gloom. Despite being against a relatively strong post-Commonwealth Games, pre-referendum comparative for August 2014, the decline in sales in August is worse than both the three-month and the 12-month averages.”
Over the three months to August, the value of Scottish retail sales was down two per cent on a year earlier.
The value of food sales in Scotland in August was down by three per cent on the same month of last year.
Non-food sales value in Scotland last month was down 1.9 per cent on August 2014.
The British Retail Consortium said last week that sales value in the UK in the August trading period was up 0.1 per cent on a year earlier. And it signalled a view that the year-on-year rise in UK sales value would have been significantly stronger had the August bank holiday in England not fallen into the September trading period this year because it was right at the end of last month.
The latest SRC figures continue a pattern of significantly weaker year-on-year movements in retail sales value north of the Border than in the UK as a whole.
The SRC recently cited a north-south gap in consumer confidence as a key factor in the consistently weaker retail sales figures for Scotland.
It has also highlighted the boost to the retail sales figures for the UK as a whole arising from the stronger economic and housing market performance in London and south-east England.
The latest figures from pollster GfK show that consumer confidence rose in both Scotland and the UK as a whole last month. However, it remained much weaker north of the Border than in the UK as a whole.
Mr McCorquodale noted that, unusually, the weak sales in Scotland in August could not be blamed on the weather.
He said: “The usual culprit to blame for poor sales – the weather – was not at fault this month as both temperatures and sunshine hours were at or above average for the month.”
Mr McCorquodale added: “As consumer confidence in Scotland oscillates between negative and positive, retailers will be very keen to ensure that, before long, the confidence can return sufficiently to release some of the Scottish purse strings.”
He highlighted the weakness of food sales in Scotland last month, compared with the UK as a whole.
Mr McCorquodale noted that, adjusting for inflation in this category as measured by the BRC and market researcher Nielsen, the volume of food sales in Scotland in August was down by 3.2 per cent on the same month of last year.
He contrasted this with year-on-year growth in food sales in the UK as a whole.
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