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Stormy start to Scottish high street sales year

Stormy start to Scottish high street sales year

Scottish high streets delivered their weakest monthly retail performance for almost four years.

Total sales last month were down 3.8%, worse than in January 2015 when they had declined by 2.3%.

It was the worst display since April 2012, and in stark contrast to UK total sales last month which rose by 3.3%.

It was also a dramatic change after a strong Christmas performance.

Like-for-like sales decreased by 4.0% on last January, when they were 3.1% down. Adjusted for deflation measured by the BRC-Nielsen Shop Price Index, total Scottish sales decreased by 2.0%.

Total food sales fell 5.8% and, total non-food sales, adjusted for online sales, increased by 0.2%. The three-month average total non-food sales growth was 0.9% (online adjusted) in Scotland, against 2.8% growth in the UK.

Scottish Retail Consortium director David Lonsdale said: “These are dour retail sales figures for January, showing a decline of 2% even once falling shop price inflation is taken into account.

“Shoppers were clearly keeping a firm grip on purse strings and wallets in January even as footfall improved.”

He said Scotland’s retailers wanted the UK Budget and the Scottish parliamentary election to further improve consumer confidence, boost disposable incomes and keep down the cost of living.

He added: “With half of VAT receipts being assigned to the Scottish Parliament our politicians at Holyrood have a direct stake in facilitating a flourishing retail industry.”

David McCorquodale, head of retail at KPMG, said: “Storms battered the Scottish high streets in January, resulting in a washout to start 2016.”