High streets still looking deserted as sales figures disappoint

Published on Monday 18 July 2011 22:27

Discounting and clearance sales failed to trigger a stampede to Scotland's high streets last month, leaving retail experts to warn of further pain to come.

Figures published today by industry body the Scottish Retail Consortium (SRC) show there was no change in total sales in June compared to a year earlier. Like-for-like sales - which strip out changes in floorspace, store closures and openings - fell by 1.8 per cent, year-on-year.

Although the results marked an improvement on May's figures, they were branded "deeply disappointing" by David McCorquodale, head of retail in Scotland at accountancy giant KPMG, which sponsors the SRC sales monitor.

"This is just the latest set of unseasonable results for retailers and, as the economy finds its feet, it is difficult to be able to predict exactly when the tide will turn for retailers that continue to struggle to attract shoppers back through the doors," observed McCorquodale.

Richard Dodd, the SRC's head of media, said: "When zero-sales growth is an improvement, you know times are tough.

"In fact, overall sales were not even that good when the effect on spending figures of inflation and higher VAT is factored in."

The Scottish figures also trail those for the UK as a whole, where total sales grew by 1 per cent in June while the like-for-like decline was pegged at 0.6 per cent - a third of the pace north of the Border.

"Consumer confidence is lower and falling faster as cuts concerns catch up with Scottish customers. And sunny weather was rare," added Dodd.

Today's report found that non-food sales picked up slightly, thanks to an earlier start to many clearance events, but remained well down on a year ago. Consumer caution continued to hit big-ticket housing-related purchases, the SRC added. On a like-for-like basis, food sales dipped 1.4 per cent last month - broadly in line with May's fall.

Wet, unsettled weather with only a few fine days meant summer produce such as salads, fresh fruit and barbecue foods struggled.

With cash-strapped consumers shopping around for the best deals, multi-packs and value ranges did well, while the cool, damp conditions boosted sales of comfort foods such as pies and puddings.

The SRC said clothing sales remained "well below" their year-earlier level, although the decline was slightly smaller than in May, which suffered the worst fall for three years.Among the "homewares and DIY" goods category, sales of televisions were said to have been particularly tough last month, compared with the previous June's World Cup-boosted trade.

Sales of white goods such as fridges and washing machines held up, though most purchases were made out of necessity rather than a desire to upgrade.

McCorquodale added: "Uncertainty about jobs and incomes has meant that big-ticket purchases have been put on hold."