January sales boost shopping sector’s ‘fragile recovery’

The January sales helped sustain the “fragile recovery” of Scotland’s shops, new research indicates.

The Scottish Retail Consortium (SRC) said warm clothing was among the top sellers but warned consumer spending continues to be cautious.

The SRC’s latest retail sales monitor, produced with KPMG, found total retail sales last month increased by 8.9% compared with January 2022.

Food sales rose by 11.3% in the same period and non-food sales by 6.9%.

Overall once inflation is accounted for Scotland recorded a 1% growth compared to January 2022.

SRC deputy head Ewan MacDonald Russell said: “Scottish retail sales stayed positive as the fragile recovery continued; with a real-terms increase of 1% in January.

“Grocers saw sales boosted by Hogmanay and Burns Night celebrations, as customers took advantage of the first real opportunity after the pandemic to enjoy these events more normally.

“On the High Street the January sales attracted customers back into shops to take advantage of some heavily discounted products.”

He added: “Warm clothing products did well, but there was also evidence consumers took advantage of the sales to pick up non-seasonal items, possibly coinciding with shoppers planning for summer holidays.

“Nonetheless, there is a clear sense any retail recovery is deeply fragile. Consumers continue to be cautious with their spending, and any increase in their costs is likely to be felt in reduced shop takings.”

Mr MacDonald Russell said both national and local government need to keep consumer incomes “at the heart of their plans in the coming weeks”.

He added: “It should be obvious that any plans which increase the cost of living for the near future need ditched if they don’t want to quell any economic recovery before it comes entrenched.”