Businesses see out 2016 with hike in festive sales

BUSINESSES enjoyed a Christmas boost as festive trading increased sharply.

High street sales rose 4.3 per cent in the five weeks before December 31, latest figures show.

The statistics from the Scottish Retail Consortium and accountancy firm KPMG also indicate that sales were 0.7 per cent higher than December 2015.

Experts said it was the strongest rise in sales since January 2014, while grocery shops recorded their best figures since October 2013.

Food retailers also recorded a sales increase of 2.5 per cent, compared to a rise of 1.1 per cent the year before, the sector’s best performance since October 2013.

Scottish Retail Consortium spokesman Ewan MacDonald-Russell said: ‘It’s encouraging to see another good month’s performance, which builds on a good November, and continues the autumn trend of a small but now sustained recovery in retail sales.’

Although Christmas provided a boost for Scottish retailers, experts warn that shops and customers will feel the pinch of increased inflation over the early months of this year.

Craig Cavin, head of retail in Scotland at KPMG, said uncertainty over Brexit could result in rises in food prices.

He added: ‘With price increases likely over the coming year, consumers were happy to make the most of the festive discounts.

‘Strong Christmas sales will give retailers hope as they prepare for the coming months, when they will have to face up to the uncertainty around Brexit.’