Sales growth for Scottish retailers surpassed that of the rest of the UK, indicating a faster rate of recovery, according to new figures.
The Scottish Retail Consortium’s (SRC) retail sales monitor for January shows that like for like sales grew by 2 per cent compared with the same period last year.
Though the figures still represent a slow down for the sector, they do compare favorably with the rest of the UK, which only saw a 0.5 per cent rate of growth from a year ago.
Overall sales grew by 5.5 per cent in January, a minor recovery from stumbling sales during the Christmas period when growth measured 5.1 per cent.
Extended sales periods throughout the month helped panicked storeowners to persuade many shoppers back onto the high street, ensuring sales were up on last year despite sluggish growth.
Fiona Moriarty, director of the SRC, said: “Consumer sentiment is now settling down to allow sustainable rates of retail sales growth. Although there are high levels of sales in January there are sometimes little or no margins for retailers on the products that are being sold.
“However, most sales stock was moved out of stores quickly and we are already seeing significant take-up on spring lines and new ranges of full price items.”
Retailers north of the border also outperformed those in London, with promotions in the capital only managing to boost sales by 0.1 per cent on an annual basis.
However, measured growth was not experienced throughout all retail sectors. Clothing and footwear stores continued to struggle in particular, with many stores prolonging their annual sales periods well into February as a result.
Andrew McLaughlin, group chief economist at the Royal Bank of Scotland, said: “Retail sales doom and gloom does not resonate in Scotland.
“We still expect an underlying slowdown in retail activity as the economy rebalances in 2005. This is likely to prompt further innovation in retail markets as businesses strive to maintain profitability.”
