Scotland's retail sector posting a middling performance in May with the value of sales down slightly on the previous year amid poor weather and fewer bank holidays.
Figures released this morning by the Scottish Retail Consortium (SRC) show a sharp deceleration in total sales with growth of just 0.1% last month, down from 10.9% in May 2023. Adjusted for inflation, total sales were down 0.5% year-on-year.
The SRC's monthly monitor, produced in conjunction with accountancy firm KPMG, found some reasons for optimism in that a sharp fall from last year's high levels of inflation meant sales volumes were not declining as quickly as would otherwise be the case.
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"The economy may be improving, but the health of the sector remains fragile, with major investment held back by many until there are clear signs that consumer confidence has turned into spending," said Linda Ellett, UK head of retail at KPMG.
On a like-for-like basis sales were 0.3% higher compared to the same period a year earlier, which was above the 3-month average decrease of 0.2% and below the 12-month average growth of 2.7%.
Within this, food sales increased by 1.1% which was below the three-month average growth of 1.4% and the 12-month average growth of 6.3%. Non-food sales decreased by 0.8% but after adjusting for the estimated effect of online sales this narrowed to a decline of 0.2%, which was above both the three-month and 12-month average.
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Ewan MacDonald Russell, deputy head of the SRC, described it as a "mediocre month".
"The slight fall [in total sales] is likely a consequence of comparison with a strong 2023 performance, where the King's Coronation and two bank holidays encouraged shoppers to splash out, compared to this year where the splashing was more to do with the miserable weather," he said.
“Looking ahead retailers will hope the upcoming run of major events, including the Olympics, European Men's Football Championships, and a series of high-profile concerts, will kick off a brighter period of trading. Retailers know all too well how cruel summer can be so will hope they can shake it off and be ready for it to be a potential gold rush to get out of the woods in the coming months."
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