Annual growth of retail sales remained much stronger in Scotland than in the UK as a whole in July, according to a surprisingly buoyant industry survey published today.
The Scottish Retail Consortium's latest report puts the total value of retail sales north of the border in July 6.2% higher than in the same month last year, a finding which stands out as highly unusual amid a raft of downbeat official data and survey evidence for Scotland and the UK as a whole.
Although this was the second consecutive monthly slowdown in the annual rate of sales growth, with the respective figures for May and June having been 8.0% and 7.8%, the 6.2% year-on-year increase in July is strong in the context of the figures recorded by the Scottish Retail Consortium over the last two years.
It appears at odds with a raft of other evidence pointing to much tougher times for the consumer throughout the UK.
The 6.2% year-on-year increase in Scotland in July is nearly four times the comparable 1.7% rate for the UK as a whole recorded by the British Retail Consortium.
However, the Scottish Retail Consortium chooses to focus on the like-for-like sales comparison.
This strips out the beneficial impact of net expansion of retail space and is an indicator of how retailers themselves are doing, whereas the total sales figure gives a much better picture of overall consumer spending.
Scottish retail sales were, in July, up 0.5% year-on-year on a like-for-like basis. In the UK as a whole, sales in July were down 0.9% on the same month last year on a like-for-like basis.
The Scottish Retail Consortium notes that non-food sales north of the border last month were, on this like-for-like basis, 3.7% lower than in July 2007 "despite vigorous promotional activity by retailers".
Fiona Moriarty, director of the Scottish Retail Consortium, declares: "Sales of non-food goods fell faster than they have since 2000 as Scottish consumer confidence, previously more resilient, slipped closer to levels elsewhere in the UK. After significantly outperforming other parts of the UK all year, this is a reality check for Scottish customers and retailers."
She claims: "These results show marked belt-tightening now extending to Scotland as Scottish shoppers begin to rein in their spending. Despite retailers offering some of the strongest discounts and promotions in recent history, customers are confining spending to essentials with clothing, homewares and DIY (do-it-yourself) retailers the worst hit."
However, looking at the total rather than the like-for-like position, sales in the non-food category in Scotland in July were 0.7% higher than in the same month last year.
And total food sales in Scotland last month were 12.1% higher than in July last year - a huge increase.
Even on a like-for-like basis, food sales in Scotland last month were 5.0% higher than in July last year.
The Scottish Retail Consortium acknowledges the strength of food sales, but claims: "The effect of higher food prices continued to inflate sales values somewhat."
It notes that, on a like-for-like basis, clothing sales in Scotland have for 14 months been lower than in the corresponding month a year earlier.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article