Sales figures are not adjusted for inflation. Given that both the August SPI (BRC) and July CPI (ONS) show inflation running at historically high levels, a portion of the sales growth will be a reflection of rising prices rather than increased volumes.
Covering the four weeks 31 July – 27 August 2022
- Total sales in Scotland increased by 6.2% compared with August 2021, when they had grown 3.2%. This was above the 3-month average increase of 4.9% and below the 12-month average growth of 15.2%. Adjusted for inflation, the year-on-year change was 1.1%.
- Scottish sales increased by 3.5% on a Like-for-like basis compared with August 2021, when they had increased by 3.4%. This is above the 3-month average increase of 3.0% and below the 12-month average growth of 12.1%.
- Total Food sales increased by 10.3% versus August 2021, when they had increased by 0.5%. August was above the 3-month average growth of 5.8% and the 12-month average growth of 1.3%. The 3-month average was above the UK level of 3.8%.
- Total Non-Food sales increased by 2.8% in August compared with August 2021, when they had increased by 5.4%. This was below the 3-month average increase of 4.2% and the 12-month average of 26.9%.
- Adjusted for the estimated effect of Online sales, Total Non-Food sales increased by 0.1% in August versus August 2021, when they had increased by 3.1%. This is below the 3-month average growth of 1.2% and the 12-month average of 18.1%.
David Lonsdale, Director | Scottish Retail Consortium
“The value of retail sales in Scotland edged up in August, even when adjusted for shop prices being at a record high. Growth was seen in both food and the more discretionary non-food categories, albeit the latter slowed somewhat. Demand for clothing and footwear, especially for back-to-school ranges, was weaker than expected albeit sales of warmer clothing including knitwear increased. Sales of larger items of furniture and home furnishings cooled.”
Paul Martin, Partner, UK Head of Retail | KPMG
“A warm Scottish summer combined with rising prices caused August sales to grow by 6% year on year, but when inflation is considered, the cost-of-living crisis is clearly starting to have a real impact on spending.
“Households across the country will be taking a long hard look at budgets over the coming months, in order to factor in the increased cost of energy and double-digit inflation. With Christmas just three pay days away, it’s likely the brakes will be firmly applied on non-essential spending for most people.
“Many retailers will be bracing for consumers tightening their belts at a time when their own margins are under pressure from rising costs. Supporting customers through these difficult times will be paramount for the health of the sector as we move through the rest of this year. Doing this will require a more granular understanding of current and future customers, continual review of the cost base and focus on how to drive productivity, especially using more effective technology.”