Shoppers 'put off' by public cuts

CONCERNS over the future of public sector jobs have been blamed for a drop in confidence by Scottish shoppers last month.

The Scottish Retail Consortium (SRC) reported that like for like sales last month were down 1.4 per cent from July 2009.

The SRC's survey also showed consumer confidence has fallen more in Scotland than in the rest of the UK, where sales were 0.5 per cent higher than July 2009.

KPMG's head of retail in Scotland David McCorquodale, argued that the larger size of the public sector in Scotland had led shoppers north of the Border to take more care until the full impact of the cuts is realised.

He said: "With uncertainty around the identity of the target of the cuts in the public sector, it is clear the Scottish consumer has opted to plan for the worst and address the family budget rather than defer the day."

The inclement weather has also led to consumers keeping their wallets in their pockets, with a fall in clothes sales compared to the same period 12 months earlier.

Purchases of food and drink fell slightly compared to a year ago and also the previous month, when the World Cup provided a short-lived boost.

The cool July days hit sales of fresh fruit and vegetables, soft fruit and ice cream, whereas salad sales held up on sunnier days. July's fall was the worst since August 2000, apart from April 2010 when the year-on-year comparison was weakened by Easter falling earlier than in 2009.

Scottish Retail Consortium director Fiona Moriarty said: "Scottish shoppers are clearly concerned about the current economic outlook, especially when it comes to job prospects."