Scottish retail sales increase 1.1 per cent

The Retail Sales Index for Scotland is a measure of the goods sold by retailers in Scotland. It is an early indicator of how the economy is performing and of the strength of consumer spending. The figures published today cover the period from April to June 2017.

The latest Retail Sales Index for Scotland shows that the volume of Retail Sales in Scotland (i.e. the quantity bought) increased by 1.1 per cent in the second quarter of 2017 (once seasonal effects had been taken into account), compared to an increase of 1.5 per cent in Great Britain as whole. On an annual basis, compared to the second quarter of 2016, the volume of Scottish Retail Sales grew by 1.6 per cent. Over the same period the volume of retail sales in Great Britain as a whole grew by 2.6 per cent.

Ewan MacDonald-Russell, head of policy at the Scottish Retail Consortium, said: “Scottish retailers will be pleased to see the value of retail sales continue to rise across 2017. However, it’s likely much of this increase is a consequence of food price inflation. Over the last six months, SRC figures show that consumers have increased their spending on groceries, with a consequent reduction in non-food sales. With more money going on the weekly food shop, customers appear to have reduced their discretionary spending, leading to tough trading on the high street.

“With both retailers and consumers feeling the pinch, the onus is on the Scottish Government to prioritise economic growth in the decisions it takes over the next few months. Retailers will hope to see Ministers supporting hard-pressed customers by keeping income tax rates at their current level, whilst taking the opportunity to reform the business rates system to make it simpler, more flexible, and more competitive.”

Euan Murray, relationship director, Barclays Corporate Banking in Scotland added: “Strong food sales, through a combination of higher prices due to inflation and increased consumer spending, have carried Q2 retail performance.

“Although it was the wettest June in Scotland for over a century, people were still making the most of the bursts of warmer weather when they could, helping food sales. A later Easter also bolstered spending in the quarter.

“The UK tourism boom continues to have a positive effect on the retail sector. Weak Sterling is delivering better value for money for our tourists and they are capitalising on that when visiting.”