Scottish retailers hope for shopping revival as sales lift
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Retailers reported their best sales figures for six months in January, but warned it was too early to tell if it was the start of a shopping revival.
Total sales in Scotland improved by 5.1% on December, but were still nearly 8% down on pre-pandemic figures.
The Scottish Retail Consortium (SRC) said high inflation, rising taxes and stretched household budgets were combining to make trading difficult.
It added that some of the sales growth reflected rising prices.
January's improved performance was helped by stronger sales of formal office wear as more people returned to their workplaces. Childrenswear and furniture also performed well.
SRC head of policy Ewan MacDonald-Russell said: "It's too early to tell if this is the start of a shopping revival in Scotland, but these figures will provide a little respite for a shattered retail industry.
"Nonetheless, there are immense headwinds battering stores right now, with high inflation, rising public policy costs and stretched household finances all making trading difficult.
"Hopefully there will be brighter skies ahead, but it looks like it will be some time until we arrive there."
KPMG's UK head of retail, Paul Martin, said the latest figures were "an encouraging start to the year" but warned that it remained to be seen if sales would continue to grow and move towards pre-pandemic levels.
"Scottish households will be feeling the pinch in the months ahead, with rising energy and fuel prices being compounded by inflation which is due to peak in April," he said.
"Retailers are facing their own inflationary pressures and will need to take tough decisions on whether and how to pass on the increased costs they have been sitting on for some time to consumers facing their own financial challenges.  
"We could easily see the health of the sector start to deteriorate if consumers choose to sit on savings to weather the storm."
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