Retail sales growth in Scotland fell to its lowest level in 10 years with like-for-like sales in July 1.4% lower than July last year.
July’s sales fall was the worst since August 2000 according to the SRC-KPMG Scottish Retail Sales Monitor.
Non-food sales dropped 2.5% on last year. It said clothing and footwear sales were weak despite aggressive discounting.
Scottish Retail Consortium director Fiona Moriarty said: “Scottish shoppers are clearly concerned about the current economic outlook, especially when it comes to job prospects. The latest official figures show unemployment is rising in Scotland and seems to be stoking existing nervousness about household spending.
“Weak consumer confidence means non-essential purchases are being put on hold. Customers are shopping carefully, looking for deals and value for money.”
She added: “We’ve seen a run of months where trading conditions continue to weaken. Retailers will be hoping ‘back to school’, together with the new autumn and winter ranges will tempt shoppers to loosen the purse strings.”