Period covered: May 24Published: June 04, 2024Read time: 1min

Scottish Retail Sales Monitor

Scottish RSM: Middling May Leaves Retailers Hoping Sunnier Days are Ahead

Ewan MacDonald Russell, Deputy Head, Scottish Retail Consortium:

"May turned into a mediocre month for Scottish retail sales, which fell by 0.5 per cent in real terms compared to the previous year. The slight fall is likely a consequence of comparison with a strong 2023 performance, where the King's Coronation and two Bank Holidays encouraged shoppers to splash out, compared to this year where the splashing was more to do with the miserable weather.

"Food and drink sales continue to grow, albeit in a more modest manner now food price inflation has stabilised.  Technology sales did well, boosted by a combination of new products alongside many early pandemic purchases now requiring replacement. Beauty and casual clothing ranges performed reasonably, albeit with little sign shoppers were buying more formalwear.

“Looking ahead retailers will hope the upcoming run of major events, including the Olympics, European Men's Football Championships, and a series of high-profile concerts, will kick off a brighter period of trading. Retailers know all too well how cruel summer can be so will hope they can shake it off and be ready for it to be a potential gold rush to get out of the woods in the coming months."

Linda Ellett, UK Head of Consumer, Retail and Leisure , KPMG:

“Whilst May’s figures show barely positive increases in retail sales, with less than one percent growth year-on-year, the impact of falling CPI - which means volumes are not declining as quickly, may help to soften the blow for hard-working retailers.

“With the early bank holiday and some better weather, there was a big step up in the number of categories that saw positive high street sales growth which was close to 3-in-4.  Health, personal care, beauty, and computing continued to sell well, whilst women’s and children’s clothing also saw small increases in sales.  After nearly three years, things may have turned a corner for online retailers, with year-on-year sales growth across most categories, including toys and baby equipment and house textiles.

“Whilst sales growth was minimal, it could point to some signs of recovery for the sector, and retailers will be eager for that trend to continue as they carefully maintain their pricing, stock and cost base. Over the coming weeks retailers will be hoping that warmer weather, purchases related to summer holiday demand and Euro 2024 provide a stimulus to get consumers buying again.  The economy may be improving, but the health of the sector remains fragile, with major investment held back by many until there are clear signs that consumer confidence has turned into spending. 

“With the General Election date fixed, retailers will be keen to hear positive measures to help boost the economy and, in particular, signs that long awaited changes to the business rates regime are finally on their way.”