Frustration for firms as Scottish shoppers remain cautious

Sector is yet to benefit from better circumstances

Lower prices and better job prospects in Scotland have yet to increase spending in the shops, an industry leader declared yesterday.

David Lonsdale, director of the Scottish Retail Consortium, was commenting on the latest Scottish Retail Sales Index.

The Scottish Government study showed the performance north of the Border lagged behind that for the whole of Great Britain.

The volume of retail sales in Scotland for the three months to March grew by 0.2%, and by 2.2% annually.

The value of retail sales, without adjusting for inflation, contracted by 0.9% in the first quarter and by 0.2% annually.

Mr Lonsdale said the dip in value of Scottish retail sales after growth in the previous quarter and flat performance over the year was unfortunate.

“It mirrors the findings of our own Scottish survey,” he said.

“Lower prices in shops and at the petrol pump, and a more optimistic outlook for jobs and wages growth, have yet to translate into increased consumer spending at shop tills.”

The retail industry was undergoing profound change, and he believed that responding to them required substantial outlays on ICT, a more highly skilled workforce, and revamped shops and warehouses.

The Scottish retail industry was looking to the next government to put in place a convincing plan to boost consumer and business confidence, he added.

Euan Murray of Barclays Corporate Banking said higher new year sales volumes, increased food sales, and multichannel shopping boosted the sector.

Retail sales in Great Britain increased by 0.9% in volume terms during the first quarter of 2015, and grew by 5.2% annually.

The value of GB retail sales, without adjusting for inflation, decreased by 0.6% in the first quarter of this year, and grew by 1.7% annually.

A more optimistic outlook... is yet to translate into increased consumer spending DAVID LONSDALE