The back to school bounce failed to stop a further fall in sales of clothing and footwear in Scotland last month.
Data from the latest Scottish Retail Consortium (SRC)/ KPMG retail sales monitor shows non-food sales were 3.7% lower in August compared with the same month in 2015.
The performance of the grocery sector was more robust with a marginal 0.3% fall in sales on 12 months previous.
Combined total sales were 2.2% lower and SRC director David Lonsdale said the “uninspiring” figures showed the retail sector was needing to be nursed back to health.
“This data should give our politicians pause for thought as they consider government’s tax and spending plans for the year ahead, with retailers looking to the Finance Secretary to do more than just twiddle the fiscal dials in the upcoming Scottish Budget,” Mr Lonsdale said.
“Ministers should be wary about adding to the pressure on household disposable incomes at a time when consumer confidence remains fragile, by keeping a firm grip on personal tax rates.
“They also need to look closely at the rising tax burden on Scottish retailers, with reversing last year’s regrettable doubling of the large business rates supplement an obvious place to start.”
Total real terms growth in retail sales over the last quarter came in at 0.1% according to the figures.
The situation may have been worse had the August figures not been boosted by the impact of back to school purchases as pupils across Scotland returned to classrooms.
The analysis shows that health and beauty products including make up, perfumes and aftershaves were the only non-food category that delivered growth during the month.
David McCorquodale, head of retail, KPMG said food had delivered its best quarterly performance for two years.
He said: “Despite the deflationary environment causing further shrinking, the sector saw its best three-month average growth for more than two years.
“Staycations, coupled with the Rio Olympics, saw families gathering at home to watch Team GB, helping to drive increased volumes.”
However, Mr McCorquodale said clothing and footwear sales had been sluggish in the period.
He said the weather had been average for the time of year and instead pointed to a variety of other possible causal factors.
He said: “It is beginning to feel like a combination of changes in consumer psychology, the lure of other leisure activities and experiences, and perhaps a lack of inspiration in the fashion world, are impacting momentum and growth in this sector.
“With a new season just launched, clothing retailers will be hoping for more than just a promotional lever to pull in order to drive volumes.”