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Poor festive period for retailers Poor festive period for retailers
(10 minutes later)
Retailers had a gloomy Christmas as Scots shoppers tightened their belts amid fears of an economic slowdown.Retailers had a gloomy Christmas as Scots shoppers tightened their belts amid fears of an economic slowdown.
New figures showed the retail sector grew by 0.4% in December 2007 compared to 3.6% during the same period in 2006.New figures showed the retail sector grew by 0.4% in December 2007 compared to 3.6% during the same period in 2006.
A dramatic drop in food sales was mainly responsible for the slowdown, according to Scottish Retail Consortium and Royal Bank of Scotland figures.A dramatic drop in food sales was mainly responsible for the slowdown, according to Scottish Retail Consortium and Royal Bank of Scotland figures.
But one of the authors of the report said the figures were not as gloomy as some forecasts had predicted.But one of the authors of the report said the figures were not as gloomy as some forecasts had predicted.
Growth in clothes and footwear also slowed but was not as bad as expected as shops discounted heavily, according to the figures.Growth in clothes and footwear also slowed but was not as bad as expected as shops discounted heavily, according to the figures.
Christmas in the shops went well for some retailers but lacked cheer for many Professor John DawsonUniversity of EdinburghChristmas in the shops went well for some retailers but lacked cheer for many Professor John DawsonUniversity of Edinburgh
Like-for-like sales - which strip out growth added by the opening of new stores - was only 0.4% higher in December 2007 than in the previous year. Like-for-like sales - which strip out growth added by the opening of new stores - were only 0.4% higher in December 2007 than in the previous year.
In December 2006, like-for-like growth had increased 3.6% on the previous year.In December 2006, like-for-like growth had increased 3.6% on the previous year.
And total sales in December, which include the effects of expansion by companies, grew at their slowest rate since December 2000, up 4.8% on a year ago. Total sales in December, which include the effects of expansion by companies, grew at their slowest rate since December 2000, up 4.8% on a year ago.
The food sector showed its first year-on-year decline since March 2006 as prices rise at the fastest rate on record, and consumers cut back on luxuries. The food sector showed its first year-on-year decline since March 2006 as prices rose at the fastest rate on record and consumers cut back on luxuries.
But there was a glimmer of hope, with sales of cut-price wine and beer offers faring well, as shoppers hunted for bargains. But there was a glimmer of hope, with sales of cut-price wine and beer offers faring well as shoppers hunted for bargains.
Clothing and footwear performed better, buoyed by huge discounts and clearances.Clothing and footwear performed better, buoyed by huge discounts and clearances.
Online presenceOnline presence
A slowing housing market also saw low sales of furniture and white goods.A slowing housing market also saw low sales of furniture and white goods.
Fiona Moriaty, director of the Scottish Retail Consortium, said: "These figures show how hard Scottish retailers have been hit by the severe pressure on people's personal finances."Fiona Moriaty, director of the Scottish Retail Consortium, said: "These figures show how hard Scottish retailers have been hit by the severe pressure on people's personal finances."
But Professor John Dawson, of the University of Edinburgh School of Management, which is responsible for putting the data together, played down the figures. But Professor John Dawson of the University of Edinburgh School of Management, which is responsible for putting the data together, played down the figures.
"Certainly it was not as bad as some early forecasts suggested," he said."Certainly it was not as bad as some early forecasts suggested," he said.
"Christmas in the shops went well for some retailers but lacked cheer for many.""Christmas in the shops went well for some retailers but lacked cheer for many."
A clear lesson from the festive period was the importance for retailers of an online presence, Prof Dawson added.A clear lesson from the festive period was the importance for retailers of an online presence, Prof Dawson added.
And Stephen Boyle, a senior economist at The Royal Bank of Scotland, said the slow growth continued a gloomy trend. Stephen Boyle, a senior economist at the Royal Bank of Scotland, said the slow growth continued a gloomy trend.
"December's retail sales figures were similar to the previous two months, confirming a slower rate of growth for the fourth quarter as a whole," he said."December's retail sales figures were similar to the previous two months, confirming a slower rate of growth for the fourth quarter as a whole," he said.
The gloom on Scotland's high streets is broadly in-line with that across the UK, which saw like-for-like growth of only 0.3% over the festive period. The performance on Scotland's high streets was broadly in line with that across the UK, which saw like-for-like growth of only 0.3% over the festive period.
Housing market fears and concerns over a broader slowdown have kept shoppers at home in recent months, pushing down high street sales.