David Lonsdale says drop in sales must be seen against ‘bumper’ period

Food sales in Scotland were 1.4% down on January 2014 after a 1% increase the best performance since June last year.

Non-food sales were 3% down on the previous year, when they had increased 7%.

Adjusted for the estimated effect of online sales in Scotland, total non-food sales decreased by 1.1%.

David Lonsdale, director of the Scottish Retail Consortium, said the slipping back of total value of Scottish retail sales last month had to be seen in the context of a bumper performance in the corresponding period last year.

He said food was the best performing category, for the first time in four months, and recorded its best performance since last June.

“Non-food related sales eased back after a stellar performance in the same period in 2014, making for a pretty flat past quarter in the category once inflation is taken into account.”

Retailers would be heartened by the Bank of England’s predictions of continued low inflation being outstripped by average pay rises, he believed.

“The Chancellor should seek to bolster this in his Budget next month with policies which stimulate retailers to invest and which boost disposable incomes such as reducing income taxes on low earners.”