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‘Buoyant start’ to the year for Scotland’s retailers

An early Easter is thought to have boosted food sales in Scotland.
An early Easter is thought to have boosted food sales in Scotland.

Scotland’s shoppers spent more in the first quarter of 2013 than they did during the previous three months, new figures from the Office of National Statistics have shown.

The positive start to the year for retailers came with a 0.3% rise in the volume of goods sold and an overall lift in sales values of 0.6% showing an improving market for shopkeepers, and demonstrating an increase in average prices.

It is thought an early Easter boosted food sales, while promotions and deals also encouraged consumers to put more through the supermarket tills.

The figures, which are not adjusted for inflation, also show the UK market outperformed Scotland in the first three months of the year, with a 0.5% increase in volume and sales climbing by 0.7%.

When compared with the first quarter of last year, Scottish sales volumes grew by 2% as total values rose by 2.5%. That improvement was more marked than the UK equivalent measures, which saw improvements of 1.3% and 2% respectively.

Euan Murray, of Barclays Corporate, said the figures marked a “buoyant start” to the year. He predicted better times to come, with a boost to the economy from sporting events including the Open at Muirfield.

“Food sales in particular will have benefited from the early Easter and also the unseasonably cold weather which encouraged consumers to dine in,” he said. “Retailers continue to entice shoppers with good deals, and with cheaper lending and low-interest rates giving people fewer reasons to save, we could see consumers spending more over the coming months.

“Certainly as we move into prime sporting season with a number of major golfing events taking place in Scotland, we expect to see a further boost to the local economy.”

Finance Secretary John Swinney said the figures demonstrated an “encouraging” start but that it remained “a trying time for the retail industry”.

“The 0.3% rise in volume of retail sales comes after a small decline of 0.1% in the last quarter of 2012, suggesting a slight recovery in consumer confidence and purchasing at the start of the year,” he said.

The Scottish Government continues to do everything it can to improve consumer confidence, he added, and is maintaining the nation’s position as the most supportive business environment in the UK.

CBI Scotland assistant director David Lonsdale called on him to keep “a firm lid” on the costs which impact on retailers.

His organisation has long campaigned against rates surcharges on larger retailers and the suspension of relief on empty retail property.

“The devolved administration’s plans for a new environmental levy on carrier bags could prove a further costly administrative headache for retailers,” he added.