Dismal weather hampers retail sales in Scotland

Wet weather and high inflation hit retail sales across Scotland in July, new figures show.

The Scottish Retail Consortium (SRC) and KPMG data suggests sales in July increased by 4.6% compared with the same month last year (4.4%).

However, this is below the three-month average increase of 9.1% and the 12-month average growth of 8.5%.

Sales of summer food and clothing ranges were badly hit by heavy rain throughout July.

The SRC has warned the "dual burden" of high inflation and interest rates means July may not be the last month of disappointing sales in the near future.

The trade body also said a high portion of sales growth may be a reflection of rising prices, rather than increased volumes.

• LIVE UK inflation falls sharply for second month to 6.8%

• What is the UK inflation rate and why is it so high?

• House prices in Scotland fall for first time since Covid

Food sales increased by 9.1% compared with July last year, when they were up 5.3%, which was below the three-month average growth of 13.9% and the 12-month average growth of 12.5%.

Non-food sales increased by 0.9% last month but this is a fall compared to the same period last year, when non-food sales rose by 3.7%.

Adjusted for inflation, the year-on-year decline of all retail sales in July was 3%.

'Miserable economic news'

Ewan MacDonald Russell, deputy head at the SRC, said: "Sales sharply fell in July as the miserable economic news combined with unseasonable weather to heap misery on shops.

"Real term sales fell by 3%, an abrupt reversal following positive figures in June, as the impact of inflation on retail volumes is now being reflected in the falling value of sales.

"It's quite likely a difficult few months are ahead for Scotland's already hard-pressed retail industry."

The cost of food in Scotland has been soaring this year

Paul Martin, of accountancy firm KPMG, said: "A damp and blustery July prompted Scottish shoppers to seek shelter indoors and tighten their purse strings.

"Total sales growth eked out a modest 4.6% increase in July, set against a backdrop of 10% inflation.

"On the high street home goods took the lead as the best-sellers.

"However, due to the poor weather, restocking summer wardrobes took a back seat, resulting in many clothing categories experiencing negative sales trends."