Period covered: February 18Published: March 14, 2018Read time: 1min

Scottish Retail Sales Monitor

Winter Clothing Warms Frosty February

David Lonsdalel, Director, Scottish Retail Consortium:

“Scottish retail sales turned in a creditable performance last month, prior to the widespread snow disruption, with a resumption in growth above that witnessed over the past few months.

“This was once again driven by the food category, aided in part by grocery and drink sales associated with St Valentine’s Day, and by better sales of clothing and footwear spurred on by discounting of winter and outdoor wear. The polarisation between food and non-food retail sales was less marked than before, with the latter recording a much shallower rate of decline than over recent months.

“While inflationary pressures on food prices appear to have crested and are beginning to ease, it is too soon to say whether this is set to correspond with greater spending on more discretionary retail items. After all Scotland’s shoppers face a number of headwinds over the coming months which may prove hard to shrug off and which could well crimp consumer spending, notably higher council and income taxes and with overall inflation continuing to outstrip the growth in wages.”

Craig Cavin, Head of Retail in Scotland, KPMG:

“Following a challenging January, Scottish retailers will be cautiously optimistic as figures show signs of improvement this month. Indeed, total growth of 0.7 per cent in February is an accomplishment in the current retail environment.

“Food sales continue to fuel retail growth, with inflation playing a significant role in the 3.5 per cent increase, although it eased slightly in February. Performance in non-food sales was disappointing once again, as consumers continue to migrate online. This, teamed with rising costs for retailers, is continuing to put pressure on our high streets.

“The impact of one of the coldest winters on record also remains to be seen. Retailers will need to adapt and think of new ways to encourage spending over the next few months through focussing on a differentiated proposition and staying relevant to the consumer.

“It’s an opportunity for retailers to really change the game – we’re already seeing some leading the way – and that’s an exciting prospect for the consumer.”