Period covered: January 19Published: February 13, 2019Read time: 1min

Scottish Retail Sales Monitor

Some Cheer as Growth Returns in New Year

David Lonsdale, Director, Scottish Retail Consortium:

“January saw a welcome return to retail sales growth after what had been an underwhelming end to 2018, and despite a dip in shopper footfall during the month. Real-terms sales grew by 1.9 per cent, driven by a more broadly-based pick up including a strong performance in food and drink, but also the first modest growth in the non-food category in six months. These figures are slightly distorted by the inclusion of Hogmanay during the reporting period, so it’s too early to say with confidence that retail sales have turned the corner.

“Grocery sales did well, helped by New Year and Burns Night celebrations, both of which encouraged shoppers to stock up on Scottish favourites including steak pies and haggis. Non-food retailers saw good performance in homeware and furniture, with consumers looking to freshen up their homes. Health related items also did well, with skincare products to combat the cold weather and vitamins and diet goods supplementing consumer’s New Year health ambitions.

“Nonetheless, it’s important to note a good January doesn’t offset a disappointing November and December which are the crucial trading months. Consumers continue to be careful with their spending at a time when political and economic uncertainty dominate the headlines, and with council tax and other cost of living rises in the pipeline. Policymakers should keep household spending pressures upmost in their minds over the next few months as a result.”

Paul Martin, UK Head of Retail, KPMG:

“Following a dreary December for retailers, January brought a glimmer of hope, with total sales increasing 2.2 per cent in Scotland – the highest increase since June.

“Shoppers took full advantage of winter discounts, which boosted sales, but these figures are also a reminder that consumers are prepared to wait for heavy discounts before purchasing, putting further pressure on retailers.

“Food sales performed well once again, increasing 4.9 per cent compared to January last year. The culinary highlight for the month was Burns Night, with haggis and other celebratory produce flying off the shelves.

“The festive period is now well and truly a distant memory and retailers will be doing all they can to adapt and remain agile in this rapidly evolving market.”