Early back-to-school purchases were not enough to stem the dip in Scottish sales during a "disappointing" July.

Retail experts said Scots prioritised leisure activities, socialising, and holidays last month rather than shopping, according to the latest figures.

Sales of larger items fared poorly and sales of TVs dipped following the end of the Euros, while purchases ahead of the start of the new school term later this month did not have enough impact to make a difference.

Total sales in Scotland decreased by 1.2% year on year compared with July 2023, when they had grown 4.6%, the Scottish Retail Consortium (SRC)-KPMG Scottish Retail Sales Monitor showed.

This was above the three-month average decrease of 1.6% and below the 12-month average growth of 1.5%. Adjusted for inflation, the year-on-year decline was 1.4%.
Sales on a like-for-like basis decreased by 0.7% compared with July 2023, when they had increased by 3.5%.

This is above the three-month average decrease of 1.3% and below the 12-month average growth of 1.3%.

David Lonsdale, director of the Scottish Retail Consortium, said: "Early purchases associated with the looming return of Scottish schools wasn't enough to stem a fourth consecutive real terms monthly decline in the value of retail sales in July.

"Scots were still chary of spending in stores as they instead prioritised leisure activities, socialising and eating out, and holidays.

"Cosmetics and grooming products, toys, and laptops did well, as did back-to-school items as families sought to spread out the cost. However, larger products such as furniture and household appliances continued to fare poorly, and sales of TVs dipped following the Euros. Groceries also fell back.

"This presents shopkeepers with a tricky balancing act as they contend with underwhelming revenues whilst supply chain and statutory costs continue to rise. Retailers will be looking for some relief on the latter when the new Chancellor and Scottish Finance Secretary set their respective budgets later this autumn."


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The figures, which cover the period from June 30 to July 27, showed that total food sales decreased by 0.3% compared to July 2023, when they had increased by 9.1%.
July was above the three-month average decrease of 0.4% and below the 12-month average growth of 3.9%.

Total non-food sales decreased by 2% in July compared with July 2023, when they had increased by 0.9%.

This was above the three-month average decrease of 2.7% and below the 12-month decrease of 0.6%.

Adjusted for the estimated effect of online sales, total non-food sales decreased by 2.0% in July which was the same as July 2023, when they had also decreased by 2.0%.

Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: "Retailers will be hoping the arrival of better weather will prompt an upturn in fortunes following a disappointing July.

"The latest data has shown a fall in total sales compared to last year including both food and non-food items as consumers continue to be wary about how much they spend in the face of fluctuating finance levels.

"Spending levels continue to be governed by whether households have been able to absorb the likes of mortgage and rent increases, or had to limit their spend elsewhere as a consequence."