Retail sales strongest since summer as Scots shoppers go for bargains

Published on Tuesday 17 February 2009 20:28

UNDERLYING high street sales north of the Border rose 2 per cent in January – the strongest result since the summer – according to fresh figures from the Scottish Retail Consortium (SRC).

However, retail experts warned that there was "no guarantee" that the sector had turned a corner. The SRC said the improvement was largely clearance-driven as shoppers rushed to pick up bargains.

Scottish sales remained stronger than in the UK as a whole, where they were just 1.1 per cent up on the previous year, on a like-for-like basis.

Sales of non-food items continued to fall – by 1.2 per cent in January – but demonstrated their strongest performance in eight months. Food sales continued to grow, by 5.4 per cent on a like-for-like basis, a slowing on December's strong increase. The SRC said a high level of price competition in the food sector had held back the rise, but added that people were willing to "treat themselves", as well as buying pricier ready meals to eat at home in preference to going out for dinner.

Fiona Moriarty, director of the SRC, said: "Having restrained their spending severely before Christmas, Scottish sales growth rose in January as price- conscious customers hit the shops knowing there were clearance bargains to be had.

"There's no guarantee this is the start of a trend. This improved performance may yet turn out to be a blip. The success of value lines shows people remain nervous about splashing out and many sales are being achieved only with big price cuts."

The consortium said the figures showed a gradual month-on-month increase since the "doldrums" of November.

And the 0.2 per cent rise in total non-food sales – which factor in new store openings – was said to be the first positive figure since August.

In the clothing sector, sales north of the Border were down slightly on a year ago, but the performance was marginally better than in December. The report said that more expensive items such as coats and dresses were popular clearance buys but accessories, jewellery and smaller purchases also showed some improvement. Footwear sales were driven by "value" ranges, the SRC added, while "multi-purpose" styles were also popular.

DIY was badly hit by the downturn in the housing market, as were furniture and floor coverings. Some big-ticket items such as beds, fitted kitchens and bathrooms held up reasonably well, amid clearance discounts and good credit deals.

The SRC added: "The January figures are notably stronger than those of the last few months but it is premature to suggest the corner has been turned. "Weak like-for-like figures in the early part of 2008 will need to be taken into account as sales in the coming months are interpreted."