Scottish retailers faced ‘miserable’ sales performance in June

The retail sector suffered a “miserable trading performance” during June, according to the latest Scottish Retail Consortium (SRC) and KPMG figures.

Sales across Scotland last month were down by 3.4% compared with June 2023, when they had grown by 11.3%. This is below the average decrease of 2.5% and below the 12-month average growth of 1.9%.

When adjusted for inflation, the year-on-year decline was 3.6%.

Scottish sales decreased by 2.9% on a like-for-like basis compared with June 2023, when they had increased by 8.5%. This is below the three-month average decrease of 2.1% and below the 12-month average growth of 1.6%.

Food sales decreased by 1.1% versus June 2023, when they had increased by 15.8%.

June was below the three-month average decrease of 1.2% and the 12-month average growth of 4.6%. The three-month average was below the UK level of 1.1%.

Non-food sales decreased by 4.8% in June compared with June 2023, when they had increased by 7.5%. This was below the three-month average decrease of 3.6% and below the 12-month decrease of 0.3%.

Adjusted for the estimated effect of online sales, total non-food sales decreased by 0.5% in June versus June 2023, when they had increased by 6.9%. This was below the three-month average decline of 4.2% and the 12-month average decline of 1.5%.

Ewan MacDonald Russell, deputy head of the SRC, said: “Scottish retailers will be glad to see the back of June after a miserable trading performance.

“Food sales fell back across the month, possibly a sign consumers have a little more financial headroom after a year of responding to food price inflation.

“However, there was little evidence of a switch to high street spending, with summer clothing and footwear ranges particularly struggling.

“There was a small uplift in technology sales, a combination of sports fans acquiring new televisions for the Euros and consumers replacing pandemic purchases.”

He said retailers will be hopeful the decline will be a “blip”, with cold weather, as well as the Euros potentially affecting sales, adding: “However, after a tepid second quarter of trading, shop owners will hope for brighter days ahead.

“With the General Election now behind us it is essential politicians start to take action to boost economic growth to help consumers whilst keeping the cost of business down for hard-pressed retailers,”

Linda Ellet, the UK head of professional services network KPMG, said: “Retailers, who are running to stand still at the moment, having exhausted all of the levers they have at their disposal to cut costs and drive sales via promotions, will be looking to the new government to boost the economy and confidence.

“The overall economic conditions may slowly be improving, but the health of the sector remains fragile, and action is needed now to help support this vital economic contributor – particularly around neglected areas such as business rate reform.”

Don’t miss the latest headlines with our twice-daily newsletter – sign up here for free.