Total sales in Scotland increased by 8.8% compared with March 2022, when they had grown 35.6%.
This was below the three-month average increase of 9% and above the 12-month average growth of 7.6%, according to the latest Scottish Retail Consortium (SRC) and KPMG figures.
Scottish sales increased by 6% on a like-for-like basis compared with March 2022, when they had increased by 28.5% - again, below the three-month average increase of 6.8% and above the 12-month average growth of 5.4%.
Total food sales increased by 14.3% versus March 2022, when they had decreased by 3.8%. March was above the three-month average growth of 13% and the 12-month average growth of 8.9%.
Total non-food sales increased by 4.1% in March compared with March 2022, when they had increased by 68.6%. This was below the three-month average increase of 5.5% and the 12-month average of 6.5%.
Meanwhile, adjusted for the estimated effect of online sales, total non-food sales rose by 3.4% in March year-on-year, when they had increased by 49.1%. This is below the three-month average growth of 4.4% and the 12-month average of 4.1%.
Ewan MacDonald Russell, deputy head at the SRC, commented that the figures show consumers cutting back on discretionary spending to focus on essentials, with food sales rising by over 14% compared to 2022 - still a real terms fall in spending.
“Consequently, high street retailers continue to find trading challenging with shoppers spending focused on sales and discounts.
“Retailers will hope Easter brings a small boost, however the outlook remains very difficult for all businesses.
“In these circumstances, any new costs imposed on businesses will be passed directly to consumers, therefore we hope to see the Scottish Government focus on making growing Scotland's economy the priority of priorities rather than adding to that cost burden.“
Paul Martin, UK head of retail at KPMG, added: “As inflation continues to offset any true sales growth in Scotland, and the cost of living crisis continues to bite, the picture for the retail sector remains stagnant as we approach the summer months.
“Some retailers are delivering growth and will be optimistic of their performance, although this is largely down to taking share from competitors through customer insights and innovation rather than any overall growth.
“The challenge for retailers now is having to face into their own rising cost agenda, as inflation continues to challenge margins, whilst ensuring affordability, choice and value for customers.”
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