High street sales fall again after a 'disappointing' July

Scotland's high streets suffered another disappointing month, with figures showing sales fell again in July.

Total sales last month were down by 0.7% from a year ago but like-for-like sales - which strip out factors such as new store openings - fell by 2.2%

Like-for-like sales growth in Scotland has now lagged behind that of the UK every month since the beginning of 2011.

Richard Lim, an economist with the Scottish Retail Consortium (SRC), said the figures for July showed there had been "no sign of any pre-Olympic boost" for stores north of the border.

The latest SRC KPMG retail sales monitor found food sales were almost the poorest they had been since the survey began in 1999.

Total food sales for July were described as being "virtually flat", rising by just 0.1% on the same month last year despite promotions by retailers.

Meanwhile, like-for-like food sales were down by 2.1%, with Mr Lim stating: "Apart from one Easter-distorted month, food sales performance was the worst since the Scottish retail sales monitor began in 1999.

"Even if people bought party food ahead of the Games, they put fewer other things in their trolleys, leaving food spending virtually the same in cash terms as a year ago."

The economist said: "July was not a good month. There's no sign of any pre-Olympic boost for Scottish retail in these figures and cutting back is becoming more widespread."

David McCorquodale, head of retail in Scotland for KPMG, said the figures showed shoppers were worried about spending money on anything other than necessities.

He said: "July was another disappointing month for the Scottish high street with rainfall, particularly in the south and east, keeping any summer revival at bay.

"Despite heavy promotions from retailers, like-for-like sales in both food and non-food were down by more than 2% on the previous year.

"Total food sales were virtually flat. That's lower than inflation, a real-terms fall, and reflective of continued caution in spending on anything other than necessities."

Non-food sales were also down on July last year, with a 1.5% fall in total sales and a 2.2% drop in the like-for-like figures.

Wet weather in July meant sales of summer sandals were poor, with the rain also affecting sales of outdoor furniture.

The trend for people improving their homes, rather than moving, helped sales of DIY goods and some retailers also reported a healthy increase in sales of floorcoverings.

Mr Lim said clothing sales had been the "bright spot" in the non-food sector, with discounting and the cooler weather in July leading to people buying from the autumn ranges, while sales of school uniforms also did well.

But he said: "Many people have been buying fewer non-food goods and concentrating on must-haves for a long time.

"As this lengthy period of falling disposable incomes goes on, food spending is coming under extra pressure too, as people search out offers and value."

Meanwhile, Mr McCorquodale said that families had "grappled with the ongoing effects of unseasonal weather on clothes purchases" and had continued to avoid committing to buying larger ticket items.

He added: "The lack of any feelgood factor encouraging consumers into the shops has provided a set of figures much more indicative of the true underlying trend.

"These show weakness in sentiment as disposable incomes remain squeezed, despite the fall in headline inflation.

"It's a real challenge for retailers to grow sales and many are only achieving this at the expense of margins.

"Time will tell what uplift came from a fantastic Olympic Games, but the eventual arrival of summer weather may be too late with schools back in the next two weeks."

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