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Tills ring in Scottish retail sector despite slowdown

© The Herald
Originally published: 23.04.2008


Scottish shopkeepers outperformed their UK counterparts by a wide margin in March 2008 despite wintry weather and a slowdown in consumer spending, according to the Scottish Retail Consortium.

The latest snapshot of the Scottish retail sector said total sales north of the border were 6.6% higher compared with those recorded in March 2007. Total sales for the UK as a whole were up by only 1.6% in March 2008 compared with the same month in the previous year.

Despite the relatively good figures for total sales in March, the consortium said the retail sector is facing tough times because shoppers are cutting back on spending as the global credit crunch, higher taxes and more costly mortgages start to bite.

"Openings of new stores, including some major developments, served to lift sales figures on a gross year-on-year comparison to 6.6%," the SRC stated.

However, the SRC pointed out that "this figure is notably lower than (those of) the last two months, despite the Easter trading in these stores being included in the figures for the first time".

The SRC report highlighted like-for-like sales for March, which were gloomy - only 1.6% higher in March 2008 than in the same month in 2007 - but were still better than numbers for the entire UK.

"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," the consortium said.

It went on to say the March like-for-like figures for Scotland were the worst since December, with most of the slowdown coming from non-food items.

Growth in food sales was down slightly from February but nonfood sales were almost flat, the report stated.

The market for homewares and DIY products remained tough but laptop computers and flat-screen televisions maintained their popularity.

"A sales slowdown has definitely taken place in Scotland," said Fiona Moriarty, director of the SRC. "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 housewares suffering some of the worst performances in recent times. Even sales events and price-cutting failed to help."

John Dawson, professor of marketing at the University of Edinburgh, said sales were weak and shopkeepers would have to work hard during the spring to create promotions to bring consumer spending back into "positive growth".

 
 

 
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