Three consecutive months of growth in Scottish retail sales fizzled out in June as shoppers abandoned the shops to enjoy holidays and concerts.
It left sales down by 0.4% during the month compared with the same trading period last year.
David Lonsdale, director of the Scottish Retail Consortium said this was “less than surprising after the slump in shopper footfall last month, and with households continuing to prioritise experiences, such as holidays and concert-going rather than purchases of products.
“That said, sales of gaming consoles and electric fans performed well thanks to new releases and the better weather.
“Meanwhile, grocery sales fell back and sales of outdoor furniture and DIY equipment slowed after a strong May.”
He said households are having to contend with a multitude of pressures which is seeing them spend selectively. Council tax and water bills have soared, inflation is increasing, and shop prices have started to rise.
“All this is putting a dampener on disposable spending. Hopefully, this downturn in sales will prove temporary, as retailers themselves grapple with a hotchpotch of cost pressures of their own ranging from higher statutory costs for employing people to higher business rates and new levies on packaging.”
Luxury fashion house Burberry said its revenues down by 6% to £433 million in the three months to the end of June as the external environment remained “challenging”.
Joshua Schulman, chief executive, said: “Over the past year, we have moved from stabilising the business to driving Burberry Forward with confidence.
“The improvement in our first quarter comparable sales, strength in our core categories, and uptick in brand desirability gives us conviction in the path ahead.
“Our Autumn 2025 collection is being well received by a broad range of luxury customers as it arrives in stores.
“Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see.”
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