YEAR-on-year growth in Scottish retail sales value last month was the poorest for any December since comparable records began in 1999, a survey reveals today, and high inflation means actual volumes were almost certainly down.
The survey from the Scottish Retail Consortium points to a grim picture on high streets north of the Border.
The SRC said the value of Scottish retail sales in December was up just 1.6% on the same month of 2010.
It added that this was the worst year-on-year movement for any December since its survey began in 1999.
It was also less than half of the 4.1% year-on-year increase in retail sales value in the UK as a whole revealed by the British Retail Consortium earlier this month.
The SRC and BRC surveys have consistently, since the spring of last year, signalled consumers in Scotland are under much more pressure than those in other parts of the UK.
The 1.6% year-on-year gain in Scottish retail sales value in December signals a sharp fall in the volume of sales, given the revelation yesterday that annual UK consumer prices index inflation stood at 4.2% last month.
Ian Shearer, director of the Scottish Retail Consortium, said: "December wasn't the saviour of a consistently harsh year for Scottish retailers.
"Sales growth revived to its highest since July but this still represented a real terms fall once inflation is allowed for.
"The Christmas boost was well below both what Scottish retailers hoped for, and the UK-wide figures.
"It came largely from a last-minute surge in the week before Christmas, helped by discounts and the shopping opportunity presented by the Saturday Christmas Eve."
He observed that people "did buy food and drink treats" but also noted that they had compensated for this by "cutting back on other things".
Mr Shearer said clothing retailers enjoyed a better month, driven by clearances and the "eventual turn to colder weather".
However, he observed relatively weak demand for most other non-food goods.
Mr Shearer highlighted the part which fear of unemployment was playing on the high street.
He said: "Consumer confidence is lower and falling faster in Scotland than at UK level as fears about incomes, jobs and the wider economy continue.
"With annual sales growth averaging just 0.8% across 2011, compared with 2.3% in 2010, Scottish retailers' contribution to jobs and investment is under threat".
Mr Shearer added: "In this tough climate, it's even more important that the Government minimises the costs it's responsible for, including business rates, retail levies and the burden of regulation."
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