Retail sector 'hit by wet weather'

Jul 18 2012

The prolonged wet weather in June led to stagnation in the retail sector as the lower temperatures cooled demand for summer clothes and outdoor goods, according to new figures.

Like-for-like sales last month did not show any growth on June 2011, the latest Scottish Retail Consortium (SRC) KPMG retail sales monitor found.

The research further noted that big-ticket purchases continued to struggle and were often promotion-led amid ongoing consumer caution.

Scotland's retail performance was also below that recorded elsewhere in the UK for the 15th month in a row.

David McCorquodale, KPMG's head of retail in Scotland, said it was a challenging time for retailers, many of whom are having to resort to prolonged marketing campaigns just to tread water.

He said: "On first appraisal, June appears to have been a better month for Scotland's retailers, with total sales increasing slightly by 1.2% on the corresponding period in 2011.

"However, this statistic does not tell the whole story for retailers as much of that rise comes from increased food sale values which continue to be driven by inflation rather than volumes.

"Yet again Scotland's retail performance was weaker than the UK as a whole and this cannot be entirely attributed to the nation's reduced appetite for Jubilee celebrations, which provided a fillip to retailers in other regions of the UK.

"A particularly wet June further dampened spirits, as evidenced by the fact we witnessed a slight uplift in sales of summer clothing during a warm period at the beginning of the month.

"This optimism was quickly washed away as the heavy rains took hold and with the end of summer fast approaching retailers will certainly be hoping for improved weather in the coming weeks."