Retailers: Sales weak as Scottish consumers cut spending

Sales growth continued to stall on Scotland's high streets last month as shoppers cut spending amid the cost of living crisis, according to retailers.

The Scottish Retail Consortium (SRC) reported a 1.6% year-on-year rise in total sales in May.

But adjusted for inflation, sales were 1.1% down on the same period last year.

SRC said retailers were "facing the difficult truth that their customers are becoming more price conscious in response to high inflation".

Food sales were up by 1.8% on May 2021, while the non-food category saw a rise of 1.5%.

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SRC head of policy Ewan MacDonald-Russell said "bleak economic news" had translated into "meagre" Scottish retail sales.

He said: "Food fell by 2.5% in real terms as feeble sales were significantly offset by higher input costs, exacerbated by the conflict in Ukraine.

"Non-food sales were similarly weak, with white goods and homeware especially poor, albeit fashion was bolstered by sales of formalwear as people started to attend weddings and similar events after a three-year hiatus."

He added: "Retailers are facing the difficult truth that their customers are becoming more price conscious in response to high inflation.

"Those customers are responding by reducing their discretionary spending, both by buying fewer items but also trading down from premium to value ranges."

KPMG's UK head of retail, Paul Martin, said: "The sun didn't shine for long during May, and clouds remain for Scottish retailers after a less than convincing May saw sales growth stall for the second month running.

"The rising cost of living is still top of the agenda for retailers, with consumer confidence a key factor to watch out for.

"Retailers will be hoping that warmer weather and a summer feel-good factor kick builds confidence amongst some shoppers - as presently overall confidence levels are lower than sales may suggest."

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