Food retailers bear the brunt as Scots high street sales slide

SCOTLAND'S high streets suffered a 0.9 per cent fall in sales last month as food retailers in particular bore the brunt of shoppers cutting back after stockpiling during December's heavy snow, figures today reveal.

Retail experts are warning shops north of the Border could be in for an even tougher ride over the next few months as consumer confidence is falling faster in Scotland than in other parts of the UK.

Like-for-like food sales slid 1.4 per cent last month contributing to the 0.9 per cent drop compared to January 2010, when they fell by a less severe 0.6 per cent. Footwear and clothing had another tough month although items such as winter coats and shearling boots did well in the clearance sales.

Last week, it emerged that UK-wide like-for-like sales had risen 2.3 per cent last month in a strong post-snow bounceback.

Fiona Moriarty, director of the Scottish Retail Consortium (SRC), said Scots households are far more concerned about public spending cuts and their effect on personal finances.

"People enjoyed themselves over Christmas but cut back once the new year got under way," she said. "January's fall in like-for-like spending marks the start of a potentially difficult trading period for retailers."

David McCorquodale, head of retail in Scotland at KPMG, which helped compile the figures, said: "With footfall on the high street below average and personal financial worries high on the family agenda, we remain cautious for 2011."

Euan Murray, relationship director at Barclays Corporate, agreed: "2011 looks set to be an interesting year for retail. We foresee some substantial changes in the landscape as retailers have to innovate and, in some cases, alter their business models to compete."

Total sales, which take into account additional selling space and store openings, were up 1.9 per cent but this was again down on the previous year, when total sales jumped 2.8 per cent across Scotland's high streets and shopping centres.