SPENDING on non-food items in Scotland has dropped to its lowest level in four years, but food retail sales were given a boost by Easter last month.
April’s retail sales monitor by the Scottish Retail Consortium and finance group KPMG found total Scottish sales jumped 2.5 per cent last month, a 3.1 per cent rise when adjusted for inflation. This compared with a fall of 3.3 per cent in April last year.
The monthly growth is distorted by the timing of Easter but takes the 12-month average to minus 1.0 per cent, the highest since December 2014.
Total food sales rose 6.8 per cent compared to April 2016, compared to a 1.7 per cent decrease in the same period last year, while total non-food sales dropped 0.8 per cent, which had been a 4.4 per cent fall last year.
On a quarterly basis, the online-adjusted total non-food change was minus 2.0 per cent, the sharpest decline since January 2013, excluding Easter distortions.
David Lonsdale, director of the Scottish Retail Consortium, said: “The impressive spike in Scottish retail sales last month is encouraging, albeit it was flattered somewhat by the timing of Easter this year.
“Nonetheless, retailers will look on this as something of a rainbow amongst the gathering storm clouds, given expectations of an unsettled and squally period ahead for consumer demand.
“There was a further and stark polarisation in the retail sales performance of food and non-food categories. Grocery did well, especially fayre associated with the Easter holiday period.
“Indeed the total value of food sales recorded their best three-month performance since autumn 2013, helped in part by the recent return of food price inflation.
“The overall performance last month was positive but could well prove short-lived. Retailers are grappling with several recent cost increases which are now really starting to take hold and which ultimately will affect margins and so their ability to invest.”
Craig Cavin, KPMG’s head of retail in Scotland, added: “It seems consumers placed festive feasts with friends and family at the heart of their Easter holidays, with grocers benefiting from a surge in food sales.”
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