The Press and Journal (Inverness, Highlands, and Islands)

Scottish

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consumers have started to “tighten their belts” with a fall in retail sales last month, figures show.

Food sales increased in February but overall Scottish sales declined by 1.9% compared to the same month in 2016.

The Scottish Retail Consortium (SRC) said 2017 had “got off to a somewhat sluggish start” for retailers with a successive month of falling sales.

Experts believe consumers are responding to a combinatio­n of moderate wage growth and rising overall inflation, with council tax set to increase in some areas as well.

SRCdirecto­rDavidLons­dale said: “Inrecentmo­nths we’ve seen a polarisati­on in the performanc­e of food and non-food categories; which continued in February.

“Food sales continued to edge up, helped by good sales of wine and chocolates for St Valentine’s Day as well as stronger demand for grocers’ meal deals; which perhaps hints at less eating out during the period as consumers reined in spending.

“By contrast, non-food categories fell back once again, particular­ly clothing, footwear and household appliances, though there was continuing interest in mobile phones, wearable technology and a revival in gaming products.

“These figures suggest Scottish consumers are maybe beginning to tighten their belts and acknowledg­e the strain from rising overall inflation and moderating wage growth, with council tax set to creep up soon too.”

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