Scottish retailers lifted by rise in high street sales

Retailers have reported an increase in sales on Scotland's high streets, despite disappointing footfall figures.

The Scottish Retail Consortium (SRC) said total sales rose year-on-year by 4.4% in June. Adjusted for inflation, the increase was 1.2%.

Food sales were up by 2.7%, while the non-food category improved by 5.8%.

SRC said sales were lifted by spending on sandals, swimwear and sunscreen as Scots prepared for their summer holidays.

There was also an improvement in sales of formalwear and dresses for special occasions.

However, larger ticket items such as furniture and electronic and electrical items fared less well, despite signs of improved stock availability.

• Strikes and cost of living fears hit Scotland's high street footfall

• UK pay falls at fastest rate on record as inflation hits

The increase in sales comes after the retail consortium reported disappointing footfall figures for June, with rail strikes and concern about the cost of living keeping shoppers away from the high streets.

SRC director David Lonsdale said: "Even when adjusted for the current higher level of shop price inflation, Scotland's retailers turned in a positive performance in June.

"Whilst these more chipper results are pleasing the fact is one swallow does not make a summer.

"It will be a real challenge to sustain this improvement over the months ahead as retailers and consumers face into a multitude of headwinds including rising inflation, weak foot-traffic which will be exacerbated by further rail disruption, and a fitful economy."

'Walking a fine line'

KPMG's UK head of retail, Paul Martin, said June "brought some welcome rays of sunshine" for Scottish retailers.

He said: "While last month's figures provide some reasons to be cheerful, ultimately the impact of inflation means any growth is paltry and doesn't signify any true shift in gear for the Scottish economy.

"As the cost of living crisis continues to deepen, retailers face walking a fine line between protecting margins and further denting consumer confidence by passing on price rises whilst negotiating with their suppliers to share the cost increases."