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Last Updated: Tuesday, 17 May, 2005, 22:58 GMT 23:58 UK
Sales growth continuing to slow
Shoppers in Perth
Like-for-like sales rose by just 1% on last April
Retail sales in Scotland have seen their slowest rate of growth for more than a year, according to statistics.

The Scottish Retail Consortium (SRC) survey said many shopkeepers had a very difficult April, especially those selling shoes and clothes.

The overall trend points to a gradual slowing down rather than the dramatic fall seen elsewhere in the UK.

The report shows that sales increased by 4.4% overall and by 1% on a like-for-like basis.

'Consumer confidence'

The figures are a continuation of a gradual slowing down of sales which began in Autumn last year, the report states.

It said consumers were holding off for price reductions and promotions before parting with their cash.

However, Scotland's food retailers and DIY stores performed better than those south of the border.

Fiona Moriarty, director of the SRC, said: "April was a difficult month for retailers with consumer confidence generally weakening, but particularly so for clothing and footwear retailers.

"This can in part be explained by the unpredictable weather impacting on appropriate stock availability.

There is no denying that April has been a tough month during which pressure on take-home pay and the uncertainty of the general election campaign have all taken their toll
Sharon McDowall
Senior economist, RBS

"However, it must be remembered that Easter is the second largest retail boom of the year, after Christmas, so the early Easter this year means that April's figures have suffered by comparison to last year."

Experts have not ruled out an improvement in sales further down the line.

Sharon McDowall, the Royal Bank of Scotland's senior economist said consumers may experience "a second wind" later in the year.

She said: "There is no denying that April has been a tough month during which pressure on take-home pay and the uncertainty of the general election campaign have all taken their toll.

"It is, however, too early to conclude that retail spending is set for a prolonged slowdown. Consumers may well find a second wind given that interest rates are unlikely to rise again this year."


SEE ALSO:
Caution urged over Easter sales
19 Apr 05 |  Scotland
Oil costs could 'hit high street'
20 Oct 04 |  Scotland
Summer rain fails to dampen sales
21 Jul 04 |  Scotland
Retailers welcome spending boom
27 Jun 04 |  Scotland


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