Not a flaming June for food

Shoppers continued to benefit from severe price competition between food and drink retailers but it meant like-for-like food sales in Scotland in June were down on the previous year.
Shoppers continued to benefit from severe price competition between food and drink retailers but it meant like-for-like food sales in Scotland in June were down on the previous year.

Continuing discount promos and a cool start to the school holidays mean sales move down again

FOOD sales in Scotland continued to struggle in June, with the Scottish Retail Consortium KPMG monthly review of the economy showing total food sales dropping 1.4% compared to last year. That was a marginal improvement on May’s figures, when sales were down 2%.
Like-for-like figures show sales down 3.3% on the same period last year.
David Martin, head of policy and external affairs at the Scottish Retail Consortium, suggested World Cup deals bolstered sales but dreary weather just as Scotland’s schools broke up for the holidays had a negative effect. He said: “Despite June’s retail figures showing a slight improvement on the previous month they rounded off a disappointingly weak second quarter.
“Warmer weather at the start of the month helped to get shoppers out, but as the weather cooled down so did sales.
“It is clear that cash-conscious consumers have grown comfortable with value, especially on food, and continue to benefit from competitive pricing driven by stiff competition between the major grocery retailers.”
David McCorquodale, head of retail at KPMG, added: “The decline in food sales in Scotland is similar to that in the rest of the UK and is more reflective of price reductions from the grocers as they battle for share of wallet than significant volume shifts.
“A few key months lie ahead to inject confidence in the economic recovery and translate that through the tills.”