Total retail sales in Scotland increased by 4.4% compared with June 2021, when they had grown by 38.6%.
The latest Scottish Retail Consortium (SRC) and KPMG figures also showed that adjusted for inflation, the increase was 1.2%.
Scottish sales increased by 3.3% on a like-for-like basis compared with the same month last year, when they had increased by 34.2%.
Total food sales were up by 2.7% versus June 2021, when they had increased by 1.4%, while total non-food sales increased by 5.8% in June year-on-year, when they had increased by 69.9%.
Adjusted for the estimated effect of online sales, total non-food sales increased by 1.4% in June versus 2021, when they had increased by 67.2%.
SRC director David Lonsdale pointed out that the month was bookended at the start by the Jubilee celebrations and at the end by more disruption on the railways.
“Sales was driven by the return of socialising and special occasions such as weddings and graduations, with sales of more formalwear and dresses doing well.
“Similarly, retailers got a lift from spending on the likes of sandals, swimwear and sunscreen as Scots got ready for their summer holidays.
“That said, there was further evidence of shopper caution as sales of larger ticket items such as furniture and electronic and electrical items were sluggish, despite further signs of improved stock availability on shop shelves,” he added.
Paul Martin, UK head of retail at KPMG , warned: “As the cost of living crisis continues to deepen, retailers face walking a fine line between protecting margins and further denting consumer confidence by passing on price rises, while negotiating with their suppliers to share the cost increases.
“Cost and efficiency will dominate retailers’ agendas as they are forced to make some tough decisions on which products make it to the shelves in order to remain price competitive for consumers.
“With warmer summer weather predicted and many consumers choosing to holiday at home this year, retailers will be hoping that the feel-good factor begins to improve confidence amongst some shoppers – as presently overall confidence levels are lower than sales may suggest.”
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