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Increased sales add to mounting optimism

Bright picture: sales of electrical items gathered momentum last month, helped by demand for laptop computers for students.
Bright picture: sales of electrical items gathered momentum last month, helped by demand for laptop computers for students.

Retailers experienced their best August in four years amid increasing consumer optimism about the economy, according to a new report.

Total sales on the high street increased by 3.5% last month when compared with the same period last year; the best total growth for August in Scotland since 2009.

The best sales growth was with food, but fashion retailers and garden centres also benefited from what is thought to have been the warmest August since 2004.

Total food sales were 3.6% up on August last year, the latest SRC KPMG Scottish Retail Sales Monitor found. Overall non-food sales increased 3.4% on the previous year, when they had decreased by just over 4%.

Scottish Retail Consortium director Fiona Moriarty said: “The best August since 2009 has helped to keep the positive momentum going following a record-breaking July.

“Combined with a recent uplift in Scottish consumer confidence, the signs are that many of us are increasingly feeling more optimistic about the economy.”

Taking account of shop-price deflation of 0.5%, total sales last month were up 4% in real terms.

Like-for-like sales, which strip out factors such as new store openings, were 0.8% higher last month across all categories compared with 12 months ago.

On top of that, the three-month average for total sales growth is now said to be in line with the UK, at 3.4%.

The study found that clothing and footwear recorded “decent” sales last month. The children’s category was the strongest, due to a good start for the back-to-school season.

There was a broad rise in demand for furniture, but sales of flooring were “disappointing”.

Cooking accessories had a good month, and demand for outdoor living items was only restricted by the availability of stock.

Electrical item sales also gathered momentum last month, with demand for laptops and tablets from students.

Ms Moriarty said: “The best growth was seen in food. Even if it wasn’t in line with its exceptional July result, it still had a solid showing, buoyed by barbecue and picnic fare on warm days but also more wintry food when the temperatures cooled down.

“Non-food also fared well, bouncing back after the previous year when many of us favoured watching the Olympics over shopping,” she said.

“That’s a very encouraging quarter which puts Scottish retailers in a good position as we shift to a new season and start getting into gear for the all-important Christmas countdown.”

The sales monitor found “impressive improvement” in consumer confidence in Scotland from July to August, catching up with the UK in that respect.

David McCorquodale, head of retail at KPMG, said: “As the sunshine continued and media reports hinted at increases in consumer confidence, shoppers responded to give retailers another positive month.”