Scottish retailers hail sales growth

Retailers in Scotland experienced a steady growth in sales last month, with consumers more willing to spend, latest figures show.

High street sales were up slightly. Picture: Ian Georgeson

Total sales were up 0.8% in May compared to the same month last year while like-for-like sales, which do not account for factors such as new store openings, were down 0.5%.

The figures from the Scottish Retail Consortium (SRC) showed that growth last month was above the 12-month average of 0.3%, but lagged behind UK growth of 3.4%.

Clothing and footwear performed the worst in the coldest May recorded since 1996 while food sales showed a steady increase of 1.5%.

Non-food or fashion items such as electricals posted their strongest result in 20 months, excluding Christmas. Tablets, large white goods and small household appliances sold particularly well.

Confidence

The SRC said that, overall, the figures suggested rising levels of consumer confidence.

Director Fiona Moriarty said: “Customers remain price-conscious, but the signs are that they entered May a little more willing to spend, especially on value ranges.

“While May ushered in some welcome weather more suited to spring after the unseasonably chilly preceding months, conditions were still volatile.

“This led to a mixed month for the fashion category - the first signs of sunshine fuelled demand for spring and summer ranges, but changes in temperature made for stop-start progress across the month.

“These are slow but steady figures which will prompt mixed feelings from Scottish retailers. While the gap has widened again with the UK, the result is up on the 12-month average of 0.3%. Retailers will be hoping that this tentative boost gathers momentum as we head into the summer.”

The SRC-KPMG Retail Sales Monitor measures monthly changes in the value of retail sales except fuel.

Struggle

Head of retail at KPMG David McCorquodale said: “With the weather remaining mixed, the cold truth is Scottish sales are trailing behind the UK’s, which this month saw a healthy 3.4% boost to sales.

“Total food sales grew by less than inflation and non-food sales growth was a mere 0.2% driven by electricals.

“Yes, spending is up, but only just, and it remains an uphill struggle for retailers who are fighting over every pound that enters the tills.

“This battle for their share of consumer wallets will remain fierce and retailers must keep a watchful eye on their own margins as they try every form of promotional activity to secure sales.

“Perhaps a few weeks of summer weather will make a difference but I believe the majority of retailers face a hard-fought campaign to persuade consumers to part with their hard-earned cash.”