Breakfast briefing: Retail news on Scottish retail sales and UK fashion retailers

Rising inflation and council taxes affect retail sales in Scotland

Inflation and council tax rises may put a strain on consumer spending, warned Scottish Retail Consortium (SRC) director David Lonsdale, the BBC reported.

He said that Scottish retailers may face "formidable challenges" and has called for a "more coherent" approach to policy-making, as retailers continue to "grapple with a hotchpotch of government-imposed cost pressures".

The Scottish government says it is doing everything within its powers to help retailers.

UK fashion retailers to face financial crisis

UK fashion retailers are at risk of facing either formal insolvency or a major financial restructuring owing to competition, the fall in sterling and heavy discounting, Belfast Telegraph reported.

According to data from Opus Restructuring, 3,991 or 43.6% of UK fashion retailers may face financial failure.

Opus business risk adviser Nick Hood said: "The UK fashion retail sector is under exceptional strain, with plenty of anecdotal evidence of sustained periods of discounting as consumers demand ever-lower prices and as the fall in sterling impacts their costs and profit margins.

"The failure of BHS and Austin Reed earlier this year shows what fate awaits clothing retailers who fail to invest and stay relevant to a constantly changing market."