THE value of retail sales in Scotland in the latest five weeks was down slightly on a year earlier, even with a boost to the sector from Easter falling earlier, industry figures have revealed.

 

This year-on-year fall in sales value in Scotland is in stark contrast to a jump in the UK as a whole.

Figures published today by the Scottish Retail Consortium (SRC) show Scottish retail sales value in the five weeks to April 4 was 0.1 per cent lower than in the same period of last year. This fall occurred in spite of a 0.5 per cent year-on-year rise in the value of food sales.

And the Scottish retail sector was unable to record a year-on-year rise in overall sales value even though Good Friday and Easter Saturday fell into the latest five-week period. These two days, on which retailers generally receive a boost from people being on holiday, fell into the subsequent survey period in 2014.

In the non-food category, sales value in the five weeks to April 4, defined by the SRC as the March trading period, was down by 0.7 per cent on a year earlier.

Figures published last week by the British Retail Consortium showed the value of retail sales in the UK as a whole in the March trading period was up by 4.7 per cent year-on-year.

The SRC has previously cited stronger economic growth and a sharper rise in house prices in other parts of the UK, notably London and south-east England, as possible reasons for a weaker retail sales performance in Scotland.

The industry body calculated, in terms of volume rather than value, sales in the food category in Scotland in the March trading period were up 1.4 per cent on a year earlier. This calculation is based on figures published earlier this month by the BRC and market researcher Nielsen showing prices in the food retail sub-sector between March 9 and 13 in the UK were down 0.9 per cent on a year earlier.

Edinburgh-based David McCorquodale, head of accountancy firm and SRC survey sponsor KPMG's UK retail sector practice, said: "The early Easter has flattered Scottish sales figures and masked some disappointments."

However, he saw "positive signs emerging in the detail".

He said: "Food retailers continued their fightback from the problems of last year and were the best-performing sector this month. Adjusting for deflation, food sales increased by 1.4 per cent in real terms - the best return since Andy Murray won Wimbledon. The timing of Easter will have boosted this significantly but grocers will be relieved to have today's good news."

And Mr McCorquodale cited weather as a factor in the weakness of non-food sales in Scotland.

He said: "Unsettled and wet weather has dampened the sales of spring fashions whilst demand for outdoor goods, normally a beneficiary of the Easter weekend, was slowed by the cooler weather."

The SRC said its figures suggested online sales had added 1.4 percentage points to year-on-year growth of UK non-food sales in the March trading period.

It added: "When adjusting Scottish non-food sales for this online effect, total non-food sales would have increased 0.7 per cent (rounded) in March, instead of a 0.7 per cent decline."

Mr McCorquodale said this performance was nevertheless "disappointing, when compared to a month which does not include Easter".