Total retail sales in Scotland increased by 1.6% compared with May 2021, when they had grown by 60.9%.
However, this was below both the three and 12-month average increases of 18.9% and 18.5%, respectively. Adjusted for inflation, the decrease was 1.1%.
The latest Scottish Retail Consortium and KPMG figures showed that Scottish sales increased by 0.3% on a like-for-like basis compared with May 2021, when they had increased by 51%. This was below the three-month average increase of 15% and the 12-month average increase of 15.4%.
Total food sales increased by 1.8% versus May 2021, when they had decreased by 1.1%. May was above the three-month average of 0.0% and the 12-month average growth of 0.1%.
Total non-food sales increased by 1.5% in May compared with May 2021, when they had increased by 112.9%. This was below the three-month average increase of 34.8% and the 12-month average of 33.9%.
Adjusted for the estimated effect of online sales, total non-food sales decreased by 2.6% in May versus May 2021, when they had increased by 109.5%. This was below the three-month average growth of 23.9% and the 12-month average of 25.4%.
Ewan MacDonald-Russell, head of policy at the SRC, commented: “The bleak economic news translated into meagre Scottish retail sales as customers cut back on spending in May.
“Retailers are facing the difficult truth that their customers are becoming more price conscious in response to high inflation.
“Those customers are responding by reducing their discretionary spending, both by buying fewer items but also trading down from premium to value ranges.”
Paul Martin, UK head of retail at KPMG, said: “The sun didn’t shine for long during May, and clouds remain for Scottish retailers after a less than convincing May saw sales growth stall for the second month running.
“The rising cost of living is still top of the agenda for retailers, with consumer confidence a key factor to watch out for.
“It also remains to be seen what effect the Chancellor’s recent announcement to provide a universal discount on energy bills will do to confidence levels, as consumers continue to make difficult choices about how to spend their money.
“Cost and efficiency are still top of agenda for most operators, and crucially, understanding how they can protect their margins whilst remaining price competitive for consumers.”
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