Period covered: July 24Published: August 06, 2024Read time: 1min

Scottish Retail Sales Monitor

Scottish RSM: Return to school not enough to stem Scottish sales dip

David Lonsdale, Director, Scottish Retail Consortium:

“Early purchases associated with the looming return of Scottish schools wasn’t enough to stem a fourth consecutive real terms monthly decline in the value of retail sales in July.

“Scots were still chary of spending in stores as they instead prioritised leisure activities, socialising out, and holidays. Cosmetics and grooming products, toys, and laptops did well, as did back to school items as families sought to spread out the cost. However, larger products such as furniture and household appliances continued to fare poorly, and sales of TVs dipped following the Euros. Groceries also fell back.

“This presents shopkeepers with a tricky balancing act as they contend with underwhelming revenues whilst supply chain and statutory costs continue to rise. Retailers will be looking for some relief on the latter when the new Chancellor and Scottish Finance Secretary set their respective Budgets later this autumn.”

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

“Retailers will be hoping the arrival of better weather will prompt an upturn in fortunes following a disappointing July.

“The latest data has shown a fall in total sales compared to last year including both food and non-food items as consumers continue to be wary about how much they spend in the face of fluctuating finance levels.

“Spending levels continue to be governed by whether households have been able to absorb the likes of mortgage and rent increases, or had to limit their spend elsewhere as a consequence.  Also, while some sectors are seeing wage growth, others are cutting posts - leaving some consumers mindful that they may need to fall back on savings if they find themselves out of work.

“ONS data for the first quarter of 2024 shows a growing average percentage of household income being put into savings.  But it's looking increasingly likely that the retail sector will see a gradual drip effect from those choosing to spend some, rather than the spending taps suddenly being turned on full.”