Why Scotland suffers as London booms
It really is grim up North. Scottish retailers suffered their worst February in more than a decade, reveal figures out today. In contrast, business is booming in London. Overseas visitors are flocking to the capital to take advantage of Sterling's weakness. Unfortunately, few of them made it north of the M25. Like-for-like sales in Scotland fell 1% from February last year, according to the Scottish Retail Consortium (SRC)-KPMG Retail Sales Monitor. So, what went wrong in Scotland, when things are going so well in London? Well, chiefly the stuff that often goes wrong in Scotland. Namely, dreadful weather and poor consumer confidence.
Last month was Scotland's coldest February since 1986. Snow for much of the month meant both food and non-food sales were weaker than in January.
Richard Dodd of the SRC told the BBC: "After extreme weather kept shoppers at home in January, Scottish retailers were hoping for a revival in February but continuing cold and snow denied them the bounce-back that was achieved in other parts of the UK."
Winter vegetables sold well
Poor weather had a positive impact on some Scottish sectors. Sales of confectionery products rose in the run-up to Valentine's Day. Winter vegetables, stews and soups did well thanks to the cold.
In contrast to the malaise in Scottish retail, sales in central London were 10% higher than a year ago.
Sterling is weak
London shops may well have benefitted from Sterling's weakness. Overseas visitors flocked to the UK capital to take advantage of beneficial exchange rates.
The survey found that food sales slowed in London in February. No, not a collective decision to diet following Christmas excess. It seems that shoppers stocked up during January's snow. So, by last month, larder cupboards were already full.
However, February's cold weather may have sparked an urge in Londoners to nest; one sector that picked up was homewares. After all, an Englishman's home. And never more so than when faced with hostile elements.
Links (open new windows)
British Retail Consortium London retail sales
British Retail Consortium Scottish retail sales
Grim result for February retail sales in Scotland - BBC
Reader Comments (Page 1 of 1)
3-26-2010 @ 11:58AM
helendavidson said...
Great to hear news about Scotland not just UK as a whole
Reply
3-18-2010 @ 4:28AM
Justin said...
Not really bothered too much who is suffering what, but I hope the Scots get their independence soon so we can return the Royal Bank of Scotland to them, and we can off load the Scottish arm of HBOS too.
We in England will then be much better off.
Reply
3-18-2010 @ 7:46AM
Dee said...
I hope we get our independence soon too, that way we can offload the likes of you! You make it sound like HBOS and RBS are the only banks bailed out by the English...........because after all if it wasnt for those two you'd be so much better off eh?!?!?!
It works both ways mate!
Waken up!
3-24-2010 @ 10:17AM
wewillie said...
So speaks the invader, Isn't it always the same , the victor writes the history
Mind you the saxons got a good drubbin at Hastings , c'mon the Normans.
3-24-2010 @ 3:02PM
robert said...
totally agree with you justin, the jocks are wellcome to there scotland its been a burnden on us english for too mant years
3-18-2010 @ 4:40AM
W M Smith said...
I recently returned from a weeks holiday in the North of England and Scotland and found the hotels to be expensive and not of the standard to be expected from 3 & 4 star establishments. The average price was about £100 per night for 2 persons with breakfast. Rooms were cold, outdated bathrooms, poor showers, evening meals were expensive and, although visually well presented, were often tasteless. Average cost of an evening meal was £50 per person but including a medium priced bottle of wine. London prices but nowhere near the standard. Yes, the scenery was beautiful but accommodation providers must understand that such beauty is not an excuse for serving up sub standard accommodation and meals. In conclusion Premier Inn and their in house Table Table restaurant at very reasonable price of about £15 per person and rooms at this time of the year from £29 are superior to these so call 3 & 4 stars hotels and at 25% of the costs I paid. It is little wonder why people stay in the south!
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3-18-2010 @ 8:16AM
Pierre said...
As my mother was from Glasgow and grandparents from the Black Isle - Scotland has a hold on my sentiment - until I go there ! Beautiful countryside, incredible history but now with an ever growing chip on its shoulder. Scotland cannot exist as a nation on its own and would not survive with out the money it derives from all UK taxation.
For all that may be good in Scotland there is a huge amount that isn't and an independant nation with the meagre economic output of Scotland would be like Greece inside 5 years.
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