Shoppers boosted Scotland's economy

Scottish shoppers have been taking advantage of sunny days to splash out on everything from swimwear and shoes to men's skincare products.

Total sales in shops north of the border for March 2003 were 0.7% higher than last month and 3.9% higher than March last year, the Royal Bank of Scotland (RBS) said.

In comparison, shops in the UK as a whole managed growth of 2.1% for March 2003 compared with the same month in the previous year, RBS' retail sales monitor found.

The bank's economists said Scottish consumer confidence was bucking the trend in the rest of the UK, where shoppers have become more cautious.

Once again Scotland has outperformed the UK on like-for like sales growth, this time dramatically Jeremy Peat, RBS

The experts said unseasonably warm weather in Scotland had helped lure Scots out for retail therapy to forget about the war in Iraq.

The recent sunny weather sent sales of DIY, garden tools and furniture, clothing, swimwear and footwear - particularly sandals and women's shoes - soaring.

Health and beauty products - especially men's skincare - wedding gifts, beds and fitted carpets also sold well across Scotland.

But the high temperatures did not lure everyone outdoors - more DVDs were sold in Scotland for March 2003 than in the rest of the UK. CDs also performed strongly.

The Scottish Retail Consortium welcomed the figures.

Director Fiona Moriaty said: "It is clear that Scottish retail sales continue to maintain steady growth ahead of the UK."

The strongest contrast between Scotland and the UK as a whole was in the growth of like-for-like sales, which does not include business from newly-built stores.

Bucking trend

Like-for-like sales growth in Scotland in February 2003 was 2.3% higher than the same month in 2002, while growth for March this year was 2% higher than March 2002.

Scotland strongly outperformed the UK as a whole, where like-for-like sales fell by 0.6% in March 2003 compared with the same month in 2002.

RBS chief economist Jeremy Peat said: "A combination of a strong labour market, low interest rates and continuing house price increases appears to have offset the impact on sentiment of the Iraq conflict and other gloomy economic views.

"Once again Scotland has outperformed the UK on like-for like sales growth, this time dramatically."