Scottish retail sales "deeply disappointing"

Retail sales in June have been described as "deeply disappointing" after figures showed no change from the same month last year.

Like-for-like sales were down 1.8%, and total sales levels did not change compared with 2010.

The Scottish Retail Consortium-KPMG Scottish Retail Sales Monitor noted that, as with the UK as a whole, both like-for-like and total sales were "less bad" in June.

Richard Dodd, the consortium'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.

"Scotland's results were also weaker than for the UK as whole. Consumer confidence is lower and falling faster as cuts concerns catch up with Scottish customers. And sunny weather was rare."

According to the survey, people in Scotland are less confident about spending money than those in the rest of the UK.

Like-for-like food sales were down 1.4% on June 2010. Non-food sales rose slightly but were still lower than that recorded a year ago.

Total sales for the month of May showed the biggest drop since 1999, the year the sales monitor began.

David McCorquodale, KPMG head of retail in Scotland, said: "The figures for June are deeply disappointing and it may be that we are starting to see an indication of a longer-term trend.

"In May, total sales fell by 1.1%, the largest drop since records began, while last month saw flat sales year-on-year, which obviously is not good news for retailers. Uncertainty about jobs and incomes has meant that big-ticket purchases have been put on hold. Poor summer weather has meant annual favourites such as salads, fresh fruit and barbecue products have often been left on the shelves, although comfort food and value ranges have fared better.

"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 who continue to struggle to attract shoppers back through the doors."

A Scottish Government spokesman said: "These figures underline the importance of the Scottish Government's policies of no compulsory redundancies and the council tax freeze, both of which are helping to support consumer confidence and boost demand in local economies.

"The figures also confirm the need for an economic plan B, or flexibility from the UK Government, in order to support growth, employment and demand in the economy."