Weather dampens retail spending

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Wet weather and swine flu fears have led shoppers to switch typical summer products such as sunscreen for health remedies, according to retail bosses.

Scottish Retail Consortium (SRC) figures showed total sales for July were up 4.8% on last year, but growth was the slowest since April 2008.

Chemists saw purchases of vitamins and tissues rise, but like-for-like sales of non-food items fell overall.

This was in contrast to sunny June, which saw a 2.2% like-for-like growth.

Richard Dodd, of the SRC, blamed the weather.

He said: "Generally, dreary weather left many thinking they didn't need more summer fashion or outdoor goods on top of what they'd already bought in previous months.

"But it wasn't cold or wet enough to get people buying autumn and winter things.

The perceived threat of swine flu has seen a switch from suncare and hay fever remedies to tissues, anti-bacterial products and vitamins David McCorquodaleKPMG

"While the amount spent on food rose, growth was the slowest since April 2008, as food inflation fell and interest in summer food and drink waned."

Like-for-like growth in July was just 0.6%.

David McCorquodale, head of retail in Scotland at KPMG, said the figures were encouraging but that consumers were still displaying a cautious approach to spending.

He said: "At all levels, volatility remains high, reflecting the precarious nature of consumer demand.

"Back to school shopping helped boost the month's figures but sales of big ticket items are slow, showing that there is still a cautious approach to spending.

"The wet weather has driven down food sales as people move away from barbecue and deli items, while the perceived threat of swine flu has seen a switch from suncare and hay fever remedies to tissues, anti-bacterial products and vitamins."

In the food and drink sector shoppers moved towards wintery foods such as root vegetables and stews.

Budget lines remained popular but there were signs of shoppers trading up and treating themselves.