Scottish retail sales up slightly in second quarter

Retail sales in Scotland rose slightly in the second quarter of this year, according to new figures.

The value of sales increased by 0.6% on the previous quarter, but were flat over the year.

Sales volumes rose 0.8% in the second quarter and grew by 2.4% annually.

Scotland was slightly ahead of the rest of Britain in volume terms for the quarter but lagged just behind in value, according to Retail Sales Index figures from the chief statistician.

Sales at large retail businesses, those with at least 250 employees, which account for about 70% of retail industry sales, remained at the same level, with no growth during April to July compared with the previous quarter.

Small and medium stores, which account for the remaining 30% of sales, saw an increase in sales volumes of 1.5%.

Deputy First Minister John Swinney said the figures showed a "positive picture".

He added: "We are working hard to support Scotland's retailers, with the most competitive business tax environment anywhere in the UK, with 96,000 properties across all sectors of the Scottish economy paying zero or reduced business rates.

"There is positive business survey evidence and wider consumer sentiment which suggests a continued positive outlook for retail sales in Scotland."

'Heartening'

The Scottish Retail Consortium said the resumption of growth in retail sales in the second quarter was "heartening".

Director David Lonsdale added: "However, with the value of retail sales over the past year as a whole decidedly flat, this suggests a continuing fragility to consumer confidence in Scotland, despite lower prices in shops and average pay rises outstripping inflation.

"The prospects for retailers are ultimately determined by the state of the economy and their own ability to adapt and seize on the opportunities that arise.

"However, these figures do bring into sharp focus big upcoming decisions which could affect disposable incomes and take home pay, notably the setting of the new Scottish Rate of Income Tax in next month's Scottish Budget and the unveiling this autumn of the promised replacement of council tax."