RETAILERS in Scotland faced the toughest trading conditions in the UK over the festive period – with a significant drop in shopper numbers.
Figures for the three months to January reveal an 8.5% drop in the numbers of people venturing out to the shops despite a range of discounts and bargains in the run-up to Christmas and in the sales.
The Scottish Retail Consortium (SRC), which compiled the report based on footfall figures, said it was further evidence of the troubled times for the industry north of the Border, where a number of firms have been forced out of business.
Shops that have hit trouble in recent weeks included lingerie firm La Senza, which entered administration last month along with fashion chain Peacocks. Memorabilia store Past Times also went into administration with the closure of all 46 stores.
Traders have suffered from consumers' lack of spending power, and the higher number of public-sector workers affected by Government cuts. In contrast, the rest of the UK saw a 1.8% rise in footfall, the term used to describe the measurement of shopper numbers.
Ian Shearer, director of the SRC, said: "These results are further evidence of the troubled times for Scottish retail.
"Even Christmas failed to bring shoppers out. The drop of 8.5% in footfall for the quarter sadly mirrors the worrying monthly sales figures in our recent Scottish Retail Sales Monitor reports, which have shown the worst declines for over a decade.
"Consumer confidence is unfortunately weaker in Scotland than the rest of the UK and that's hit consumer spending. Concerns about personal finances and job security are biting, putting people off shopping, with no sign yet that a turnaround is coming."
He added that Scotland had a lower than average town vacancy rate in January – meaning there were fewer empty stores on the country's high streets. Scotland's rate stood at 9.1%, a marginal drop of 0.5% on last year, while the rate for the rest of the UK was 11.1%.
Mr Shearer said: "It's encouraging that the rate of town centre vacancies remains better in Scotland than the UK average, but it is still too high.
"With the Scottish Government reviewing town centres this year, the factors affecting the retail sector and its massive contribution to regeneration and employment need to be clearly understood.
"April's above-inflation rises in business rates will have a further damaging impact and exemplify the wrong approach."
However, the Scottish Government claimed businesses can spread the payment of next year's higher rates bill over three years through a deferral scheme.
A Government spokeswoman added that the more "robust" Retail Sales Index showed "the volume and value of retail sales increased in the fourth quarter of 2011", with Scottish volume increasing by 0.7% over 2011 against 0.3% growth in Britain.
The spokeswoman said: "We are taking every possible step to enhance economic and consumer confidence, as well as support business through difficult trading conditions."
Throughout the UK, footfall in out-of-town stores increased by 3.1%, while in high streets it went up by 1.4% and in shopping centres 0.8%.
Diane Wehrle, of research firm Springboard which gathered the data on behalf of SRC, claimed that, overall, the UK had defied expectations.
She said: "Despite recent concerns over the health of high streets, UK-wide footfall defied expectations over the last quarter with an uplift of nearly 2%."
But she said there was better news for out-of-town shopping centres as shoppers seek to avoid high street parking charges.
Glasgow Fort, on the outskirts of the city, said footfall was growing.
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