THE value of retail sales in Scotland last month was down on a year earlier, as grocers continued to struggle, the latest industry figures have shown.

Figures published today by the Scottish Retail Consortium (SRC) show that the value of sales north of the Border in February was down 1.4 per cent on the same month of last year. The British Retail Consortium (BRC) said last week that the value of sales in the UK as a whole last month was up by 1.7 per cent on February 2014.

SRC director David Lonsdale recently 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 the weaker retail sales performance in Scotland.

The latest Scottish figures show particular weakness in the food retail sub-sector, signalling pressure on household budgets. The value of food sales north of the Border in February was down 2.6 per cent on the same month of last year.

In the non-food category, the value of sales in Scotland in February was down 0.5 per cent on the same month of 2014.

The SRC calculated that, taking shop-price deflation into account, the volume rather than value of Scottish retail sales in February was overall up by a rounded 0.2 per cent on the same month of 2014.

Figures published earlier this month by the BRC and market researcher Nielsen showed UK shop prices in February were down 1.7 per cent on a year earlier.

Prices in the non-food category were down by 2.5 per cent year-on-year last month in the UK. This sharp deflation implies the volume of non-food sales in Scotland in February was up significantly on the same month of 2014.

Food prices in February were, according to the BRC and Nielsen, down 0.4 per cent on the same month of last year. This implies food sales in Scotland last month were down sharply on February 2014 in terms of volume and value.

The year-on-year drop in the value of Scottish retail sales in February was the least sharp since last November. Scottish retail sales value in January had been down 2.3 per cent on the same month of 2014.

David Martin, head of policy and external affairs at the SRC, observed that clothing and footwear had performed well for those retailers with new spring ranges which had coincided with milder weather in early February.

However, he flagged weakness of food sales and intense competition in the supermarket sector.

Mr Martin said: "Food sales...continued to struggle as any discernible recovery in household incomes, aided by lower interest rates and falling fuel prices, did little to translate into growth at shop tills. A range of factors are at play, with additional disposable income being directed at either non-food spending or towards other leisure pursuits such as eating out, whilst fierce competition between the large multiple grocery retailers continues to impact sales values. Nevertheless, whilst conditions remain highly challenging for grocery retailers, it is a great time to be a consumer with the cost of groceries declining at an unprecedented rate."

He added: "With the chancellor unveiling his Budget today, retailers will be looking closely for policies which make it easier and less expensive for retailers to invest and which boost the spending power of households, particularly for those on lower incomes."

Edinburgh-based David McCorquodale, head of accountancy firm and SRC survey sponsor KPMG's UK retail sector practice, said: "Deflation continues to dampen Scottish sales performance as the sluggish start to the year continued. The impact of falling prices again had a negative effect on total Scottish sales values which fell by 1.4 per cent last month when compared with February 2014. Adjusted for deflation, total Scottish sales increased by only 0.2 per cent, hinting that consumers are either keeping any savings made in energy and commodities or spending it elsewhere."

He noted the food category in Scotland had suffered its sharpest year-on-year fall in sales value since last October.

Mr McCorquodale said this was a "setback on the long hard road to recovery in this sector".