Period covered: June 18Published: July 18, 2018Read time: 1min

Scottish Retail Sales Monitor

Sunshine and Sport Spur Scots into Shops

Ewan MacDonald-Russell, Head of Policy & External Affairs, Scottish Retail Consortium:

“Some superb weather and a bumper summer of sport saw retail sales continue to shine in June. Total sales were up 3.2 percent in real terms across the month, with positive growth in both food and non-food categories. Scots, perhaps unused to one of the hottest Junes in a century, sought out drinks, fans, barbeques and paddling pools to cool off and enjoy the sunshine.

“Food sales continued their strong performance in 2018 with growth of 4.8 percent. In particular this month consumers were keen on picnic and barbeque food, reflecting the unusual opportunity to consistently eat outside. There were also strong drinks sales due both to the weather, but also as a result of the series of sporting events on television, not least the World Cup.

“It was heartening to see a second month of non-food sales growth after a difficult start to the year. Outdoor furniture, sunblock and skincare products, and televisions all saw very good sales. However, even in these conditions fashion and footwear items were often significantly reduced to encourage sales, indicating consumers are still working within tight household budgets.

“Overall retailers will have welcomed some relief this month. However, whilst it’s fun to get excited by the sunshine, the reality is things are still very challenging for the retail industry. The big question is whether shoppers will continue to act so positively once the weather returns to normal. In the autumn retailers will have a clearer sense of whether this was a shoppers’ summer fling or a more serious commitment from consumers.”

Paul Martin, UK Head of Retail, KPMG:

“June saw the highest monthly growth in sales since January 2014, with an increase of 2.7 percent on the previous year. Soaring temperatures across Scotland, coupled with the World Cup action, are likely to have boosted sales, with outdoor furniture, seasonal clothing and BBQ food and drink flying of the shelves.

“Grocers particularly benefitted from the brighter weather, with food sales increasing by 4.8 percent compared to this time last year. Shorts, dresses and sandals were likely to have been popular, but retailers will still have had to entice shoppers in the door with deeper discounts.

“Despite the uptick, the woes of the high street continued in June, with sales not necessarily guaranteeing profit.

“June’s warmer weather may have provided some welcome relief, but we know it’s not likely to last. As temperatures cool, retailers must look to other ways to maintain growth in a sector undergoing significant change.”