SCOTTISH retail sales value rose in the key trading month of December at the sharpest underlying year-on-year pace since January 2014, underpinned by strength in the grocery sector, the latest industry figures reveal.

The figures, published today by the Scottish Retail Consortium (SRC), show the value of sales north of the Border in December was up by 0.7 per cent on the same month of 2015.

Although this was the sharpest year-on-year increase since January 2014, excluding distortions related to the timing of Easter, it was adrift of a 1.7 per cent year-on-year rise in retail sales value in the UK as a whole reported last week by the British Retail Consortium.

The SRC noted a late surge in food sales in Scotland as consumers stocked up for Christmas.

Food sales value showed a 2.5 per cent year-on-year rise last month. However, the value of non-food sales in December was down by 0.7 per cent on a year earlier.

Ewan MacDonald-Russell, head of policy and external affairs at the SRC, said: “A strong last week before Christmas led to the strongest rise in Scottish sales since January 2014.”

He noted the year-on-year rise in food sales was the best performance for more than three years.

However, citing “worries ahead”, he said: “A number of economic indicators suggest inflation is affecting input costs for retailers, and that’s already starting to feed through to the high street.

“Those costs also mean, whilst total sales value may rise, that may not correlate with an increase in retail profits. Both customers and retailers are likely to continue to feel the squeeze.”