In May, Scottish retail sales experienced a significant boost in comparison to the previous year, thanks to the combination of bank holidays and sunny weather. These factors enticed consumers to start spending again, resulting in a double-digit increase in total sales. The focus was particularly on spring/summer fashion purchases, as people refreshed their wardrobes.
The period from 30 April to 27 May proved to be especially fruitful, with the additional bank holidays, including the coronation, coinciding with improved weather conditions. In May 2023, total sales in Scotland grew by 10.9% compared to May 2022, where the growth was a more modest 1.6%. This surpasses the average three-month increase of 9.5% and the 12-month average growth of 7.8%. Considering inflation, the year-on-year growth was a more modest 2%, but still a positive outcome.
Analyzing sales on a like-for-like basis, Scottish sales saw a 7.7% increase compared to the previous year’s 0.3% growth. This outperforms the average three-month increase of 6.6% and the 12-month average growth of 5.5%. The non-food retail sector experienced a notable rise of 6.5% in May compared to May 2022, where the increase was only 1.5%. After adjusting for the estimated effect of online sales, non-food sales increased by 5.1% in May compared to the same period 12 months ago, which saw a decline of 2.6%.
Ewan MacDonald Russell, Head of Policy & External Affairs at the Scottish Retail Consortium, attributed the majority of the growth to clothing and footwear purchases. As consumers refreshed their wardrobes, this category experienced a significant boost. However, Russell also expressed concerns about persistently high inflation. Consumers are becoming more selective in their purchases and are prioritizing essentials over discretionary items. There is hope that inflation may decrease, but it’s crucial to note that one positive month does not indicate a significant improvement in the overall economic situation.
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