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August 30, 2008 Est 1999 Scotland's award-winning independent newspaper
High street spending in Scotland falls

LATEST SHOP sale figures for Scotland indicate a sharp decline in consumer spending, retail experts said today.

Like-for-like sales in March were just 1.6% higher than the same month in 2007, when they had risen 4.6% on the previous year, according to the Scottish Retail Consortium (SRC) figures.

Last month's like-for-like sales were the worst since December, with most of the slowdown coming from non-food products.

Industry experts said that only the Easter boost stopped non-food sales from falling compared with a year ago.

They warned that "nervous customers" were reining in their spending.

Clothing, footwear and homewares were particularly hard hit.

Professor John Dawson, of the Universities of Edinburgh and Stirling, said: "Headline figures for retail sales in March were weak.

"When account is taken of the early Easter then, in real terms, sales are now in negative territory.

"Consumers appear to have reduced their spending in the shops but whether this is a delay in spending or a real reduction is not yet clear."

The figures came from the SRC's Scottish Retail Sales Monitor, compiled together with the University of Edinburgh School of Management.

The fact that Easter was in March this year but not in 2007 influenced the sales figures, the SRC said.

Like-for-like food sales rose by 3% in March but the SRC said they may not have gone up without the Easter boost.

Heavy rain and gales drove up sales of wintery soups and vegetables rather than salads and chilled products, while confectionery and gift foods benefited from Easter.

But in the non-food sector like-for-like sales rose by just 0.3% compared to the same month last year, with clothing sales particularly down.

Poor weather dampened enthusiasm for shopping, while the housing market slowdown and squeeze on consumers' finances hit homewear, DIY and furniture sales.

Computer games software and hardware continued to outperform, however, while flat-panel TV's and laptops remained popular.

Toiletries and cosmetics sales slowed, though healthcare, medicines and suncare products held up.

However sales growth slowed less in Scotland than in the UK as a whole, where like-for-like sales fell 1.6% below their March 2007 level.

In Scotland total sales, which include those from new store openings and expansions, were up 6.6% on last year.

Fiona Moriarty, director of the SRC, said: "A sales slowdown has definitely taken hold in Scotland. What little growth there was, came from food sales.

"Only the Easter boost stopped non-food sales actually falling compared with a year ago with clothing, footwear and homewares suffering some of the worst performances in recent times.

"Even sales events and price-cutting failed to help much.

"This is a clear indication that nervous customers, short of spare cash, are reining in spending on non-essentials."

The SRC report said: "The evidence from both totals and like-for-like figures across the retail sector is of a sharp retrenchment in consumer spending in Scotland.

"The growth seen in January faltered in February and has slowed further in March.

"April figures are likely to be particularly poor as comparison will be against a strong April in 2007."

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Posted by: Tam Glen, the but n ben on 9:19pm Sun 27 Apr 08
headline

A survey of charity shops showed,

HIGH ST SPENDING DOWN.
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