Tourist towns enjoy a surge as 'staycations' boost trade

Footfall was up by just over 3 per cent but the number of shop vacancies also rose marginally, to 9.2 per cent in April.

The footfall figure was the third fastest growth rate of all the nations and the fastest in Scotland since July 2014, and was "well above" the three-month average of 1.8 per cent.

Diane Wehrle, marketing and insights director at retail body Springboard, said: “As Easter fell in April this year as opposed to March last year, footfall in Scotland was boosted by 3.2 per cent.

"This was demonstrated by a 4.9 per cent rise in the first half of the month, which culminated in Good Friday and Easter Saturday, compared with a drop of 2 per cent in the last two weeks.

"Footfall generally was fuelled by the weakened pound, driving both an increase in overseas tourists and in Easter 'staycations' amongst domestic visitors demonstrated by a rise of 5.1 per cent in coastal towns, and of 7.9 per cent in historic towns.

"The underlying structural shift towards leisure-focused trips meant that whilst high street footfall rose by 1.9 per cent during retail trading hours, trips to high streets post 5pm increased by more than 3 per cent.”

SRC head of policy Ewan MacDonald-Russell described the April figures for footfall and shop vacancy rates as a "mixed picture".

He said: "Shop vacancy rate is now standing at 9.2 per cent, up from 9 per cent in January, and the highest figure in almost two years.

"In itself that movement is not hugely significant, but with several other economic indicators in Scotland also raising concerns, policymakers should pay close attention to the measures they take which affect retail premises - especially the upcoming Barclay Review of business rates.

"There was much better news for retailers with strong footfall in April, which pushed the three-month average growth up to 1.8 per cent.

"In fact, these are the best shopper footfall figures in almost three years, and the highest three-month average we've seen in Scotland since September 2014."

A 1.8 per cent fall in retail sales volume in March - the steepest drop for any calendar quarter since 2010 - sparked fears of an economic slowdown.

The seasonally-adjusted figures, published by the Office for National Statistics, heightened worries that household finances are becoming ever-more stretched.

UK retail sales volumes in the first quarter were 1.4 per cent lower than in the preceding three months, the ONS figures show.

The 1.8 per cent month-on-month plunge in sales volumes in March was much worse than the 0.2 per cent fall forecast by the City.

Speaking in April, director of the Scottish Retail Consortium, David Lonsdale, said: “Consumer demand has often proven a reliable source of growth in the economy but this will be tested in the period ahead, as Scots find themselves buffeted by rising overall inflation and with higher council tax and higher employee pension contributions in the pipeline.”

A slump in footfall in January prompted the SRC to renew its call for a review of business rates.

The year-on-year 1.1 per cent slump in January was the biggest drop since the immediate aftermath of the Brexit vote, according to the SRC’s monthly index.

The organisation’s head of policy, Ewan MacDonald-Russell, said in February: “Trading conditions continue to be tough for physical retailers.

“With shopper footfall easing down at a time when cost pressure from public policy is building, it’s vital in the short term at least that government doesn’t add further additional burdens to retailers already struggling with rates bills and apprenticeship levies, or to consumers facing rising council tax bills.

“However the current situation is not sustainable, and it’s clear that fundamental reform of the punitive business rates system is urgently needed to take the pressure off hard-pressed retailers.”

Former RBS chair Ken Barclay is currently carrying out a review of business rates and is expected to present his finding to the Scottish Government in July.