Scottish retailers experienced a welcome uplift in sales during March, with Mother’s Day and improved spring weather driving demand across key categories, even as the sector continued to face significant economic challenges.
Retail sales in Scotland rose by 2.8% in March compared to the previous year, a figure that, while lower than the 8.8% surge seen last March, was still above the three-month average increase of 2.1%. When adjusted for inflation, this represented a positive 1.5% year-on-year growth, according to the latest British Retail Consortium (BRC)-KPMG data.
The growth was fuelled by strong performances in food and drink, health and beauty, and gardening products, as consumers sought gifts and home improvements to mark Mother’s Day and enjoy the first days of spring.
“High street sales growth was driven by food and drink, health and beauty and keen gardeners who headed outside to enjoy the first days of spring. There were also some signs of green shoots with more categories starting to see positive sales growth in March for the first time in months,” noted the BRC-KPMG report.
Despite these bright spots, the retail environment remained challenging. Consumer confidence was subdued, with many households facing rising costs and ongoing economic uncertainty.
Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, commented: “Amidst downbeat consumer confidence in the UK’s economic outlook, and many households facing rising costs, retail sales growth feels an achievement. But with non-food sales only climbing around 1% on average, competition means there are some retailers really struggling whilst others win, especially online.”
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Mother’s Day proved to be a particular highlight, delivering a notable boost to footfall and sales on the high street. “Mother’s Day in particular delivered a standout performance, driving a +13.4% uplift in High Street footfall compared to last year,” observed Andy Sumpter, Retail Consultant EMEA for Sensormatic.
Retailers are now looking ahead to the coming months, hoping that easing inflationary pressures and the arrival of warmer weather will help sustain the momentum. However, the sector faces fresh cost pressures, including increases to the National Living Wage and business rates, which are likely to impact margins and investment capacity.
As Scottish retailers prepare for the crucial Easter trading period and the onset of higher sector costs, the industry remains cautiously optimistic that consumer confidence will continue to recover and translate into stronger sales through the spring and summer.
