Hope on the high street but retail hike is not a recovery

SHOP sales in recession-hit Scotland were 0.5 per cent higher last month then they were a year ago, figures published today have revealed.

The largest increase in food sales this year produced the boost for business at stores open for more than 12 months.Total sales for March compared to last year grew by 4.5 per cent.

But yesterday, the Scottish Retail Consortium (SRC), which produced the figures, warned that they did not mean that the Scottish economy had turned the corner.

According to the SRC, better weather and higher food prices, combined with a trend for consumers to "treat themselves" to luxury food products over the festive Easter period, may have skewed the figures.

The rise in retail sales north of the Border was stronger than in the UK overall, where recent British Retail Consortium figures revealed that like-for-like sales fell by 1.2 per cent and total sales rose by just 0.6 per cent.

Fiona Moriarty, director of the SRC, commented: "Retailers are hoping the increase in sales growth is the first sign of a spring boost.

"But this doesn't mean the Scottish economy has turned the corner. Conditions remain tough for customers and retailers."

She added: "While food sales continued to grow and new season fashions did well, most non-food retailing struggled – especially expensive items, such as furniture and floorings. Retailers want the Budget to help, not hinder, this glimpse of revival in consumer confidence."

The SRC report said: "When we consider the overall increase of 0.5 per cent for like-for-like sales and 4.2 per cent for total, this does not really suggest that the corner has been turned for retail sales in Scotland. The reality is that these are still very weak figures."

In January, some analysts heralded a recovery in the sector as like-for-like sales rocketed 2 per cent compared to 2008 – but the figure slipped back down to a near 1 per cent drop the following month.

On a like-for-like basis, non-food sales dropped by 3.5 per cent – while even taking into account the few new stores which have opened over the past year, sales declined by 1.3 per cent, continuing the trend of negative growth in the sector every month since last May.

Like-for-like food sales grew by 4.8 per cent, while total sales rocketed by 10.1 per cent – above the average 9.9 per cent figure of the past three months since the beginning of the year.

The report added that food price inflation was a "considerable part of the reason" for the increase in like-for-like sales.

It said: "Although probably not accounting for all the 4.8 per cent, the change in prices over the year must be used to discount this apparent growth."

Warm weather appeared to have had an impact on a number of sectors last month, with spring clothing ranges, garden furniture and outdoor toys and gardening products all receiving an unexpected boost.

Mothers' Day also fell in March this, year prompting a rise in sales of fragrances, skincare, cut flowers, houseplants and beauty products.

In the food sector in March, sunny weekends gave a temporary boost to summer fare such as salads and soft fruit as well as barbecue foods and charcoal – while soups and stews were popular on colder wet days.

A return to cooking from scratch boosted home baking products and raw ingredients.