Retail sales helped by early Easter

Retail sales for last month were flattered by the run-up to an early Easter, said the director of the Scottish Retail Consortium (SRC).

David Lonsdale was commenting on the latest SRC-KPMG retail sales monitor, which showed Scottish sales fell 0.2% on a like-for-like basis compared to March last year, when they had decreased by 1%.

Mr Lonsdale said: “While retail sales grew in March and at first blush seem to have turned in another creditable result, the figures were heavily distorted and flattered by the early Easter and, overall, last month’s performance will be seen as somewhat underwhelming.

“Grocery sales once again were the bright spot, bolstered by celebrations associated with Easter and Mother’s Day.

“The Beast from the East weather phenomenon at the start of March had little impact on food sales over the trading period as a whole.

“The same cannot be said for nonfood retail sales, with the Beast preventing shoppers from reaching stores in the early part of March, and so this more discretionary part of retail spending struggled once again,” added Mr Lonsdale.

Total food sales last month increased 6.8% year-on-year, while non-food sales declined 4% over the same period.

Adjusted for the estimated effect of online sales, total non-food sales declined 2% compared to March 2017.

Mr Lonsdale added: “Retailers will now look nervously towards April as they calibrate their efforts to tempt shoppers. The underlying weakness in consumer spending persists, and household disposable incomes face a number of headwinds.”

Scottish Retail Consortium director David Lonsdale.