Scottish retailers report 'another difficult month'

Shoppers in GlasgowImage source, Getty Images

June proved "another difficult month" for Scottish retailers amid growing economic and political uncertainty, a report has found.

The SRC-KPMG retail sales monitor recorded a 2.3% year-on-year drop in total sales.

Food sales were up by 0.8% but non-food sales were 4.8% lower than the same period last year.

Retailers said it was evident that consumers were "restricting" their discretionary spending.

The Scottish Retail Consortium (SRC) said in the non-food category, fashion sales continued to be "quite poor", with retailers reporting even discounted products "underperforming expectations".

'Reduced confidence'

SRC head of policy Ewan MacDonald Russell said there had been "a clear trend" in recent months of a slowdown in consumer spending.

He said: "The SRC remains concerned the intense political and economic volatility, along with the prospect of further costs resulting from government policy, is discouraging consumption.

"The consequence of the unending Brexit gridlock and stagnation is reduced confidence amongst retailers and consumers - which can only reduce overall growth."

KPMG head of retail Paul Martin said: "The latest figures provide further evidence that growing economic and political uncertainty is taking its toll on Scotland's high streets.

"While non-food sales fell victim to the largest dip, food retailers are far from immune from the difficult trading conditions, with another flat performance."