Summer food sales slide

August provided further disappointment for Scotland’s food retailers, with like-for-like sales down by 3.5%. However, the gap between the decline in Scotland and that in the UK has narrowed again.
August provided further disappointment for Scotland’s food retailers, with like-for-like sales down by 3.5%. However, the gap between the decline in Scotland and that in the UK has narrowed again.

SCOTLAND’S food retailers have continued to see a fall in sales, according to the Scottish Retail Consortium and accountant KPMG.
Figures for August show food was the worst category in the ranking table, as opposed to last year, when it was the best performing category in Scotland. Like-for-like sales were down 3.5%.
Total food sales decreased by 1.8%, which KPMG says was an improvement over the previous month.
Although the category’s three-month performance was down 2.0%, that gap narrowed with the UK, which had dropped 1.6%.
David Lonsdale, director of the Scottish Retail Consortium, said: “The grocery market remains particularly tough for retailers. Food price inflation is at a record low, and whilst the intense competition in the grocery sector brings benefits to Scottish consumers in terms of keen prices, it can be a challenging environment for the firms involved.
“Looking forward, retailers will be buoyed by recent forecasts for employment and wages, however the crucial factor will be when this will translate into higher levels of confidence and more transactions.”