Commenting on today’s ONS Retail Sales figures, Karen Johnson, Head of Retail & Wholesale at Barclays Corporate Banking, said:

“Many retailers saw something of a spending boom during the course of the pandemic, but now it looks like the dust from this explosion is finally beginning to settle. Consumer spending appears to be dropping back down to normal, whatever normal means in 2022…

“As the busy high streets across Scotland in December would suggest, there was a seasonal boost to clothing retailers pre-Christmas, but spending on clothing reduced back to low growth levels in January. Health and beauty did fare slightly better, as people kitted out in support of their New Year’s resolutions, but this wasn’t enough to reignite the sector last month.

“Looking ahead, the outlook is uncertain. Interest rate rises and increasing costs are front of mind across the industry. What impact these pressures will have on consumer spending is THE question for the months ahead.”