'Modest' growth in retail attributed to food and drink sales

Retail sales in July grew "modestly" thanks to the food sector, figures have revealed.

Like-for-like sales were 0.2% higher than a year ago, while total sales increased by 1.7% on July 2010.

Analysts said the rise was due to more sales of food and drinks, thanks in part to a short spell of better weather.

The Scottish Retail Consortium and sales auditors KPMG said the increase followed two months without sales growth in May and June.

Richard Dodd, head of media at the Scottish Retail Consortium, said: "This general return to sales growth is positive news for Scottish retailers but it shouldn't detract from the underlying weakness in consumer spending.

"What growth there was in July came from food and drink, partly due to better weather later in the month but also to the effect of inflation on top-line growth.

"Sales of non-food goods fell for the third consecutive month as consumers shunned non-essential buying."

David McCorquodale, KPMG's head of retail in Scotland, said: "After two months without growth, July's modest increase compared with the same month last year will come as some relief for Scottish retailers.

"Few retailers are particularly optimistic about the outlook, although many expect inflationary pressures to decrease in the latter part of the year."