Scottish retail sales down and trailing UK

Latest figures from the the Scottish Government’s Retail Sales Index have revealed that the value of retail sales in Scotland fell 0.9 per cent in the first quarter of this year, down by 0.2 per cent over the year to the end of March.

The result marked a significantly worse performance than the 0.6 per cent decline recorded in the UK as a whole.

Meanwhile, the volume of sales in Scotland increased by 0.2 per cent in the first quarter and grew by 2.2 per cent annually.

David Lonsdale, director of the Scottish Retail Consortium, said: “The dip in the value of Scottish retail sales in the early part of this year - after positive growth in the previous quarter - and flat performance over the year as a whole is unfortunate and mirrors the findings of our own Scottish survey. Lower prices in shops and at the petrol pump and a more optimistic outlook for jobs and wages growth have yet to translate into increased consumer spending at shop tills.

“The retail industry continues to undergo profound change due to structural and regulatory as well as economic factors. Responding to these changes will require substantial outlays on ICT infrastructure, a more highly skilled workforce and revamped shops and warehouses, against a backdrop in which shop prices are at record lows, margins are thin and costs - including business rates - keep rising. With the outcome of the General Election almost upon us, the retail industry in Scotland is looking to the next government to put in place a convincing plan to boost consumer and business confidence.”

The RSI measures the total turnover of businesses registered as retailers.