Scottish retail sales up 1 per cent

Total sales in Scotland rose by 1.1 per cent compared with September 2016, when they had declined by 0.6 per cent.

This is a better performance than the three-month and twelve-month averages of 1.0 per cent and -0.3 per cent respectively. Adjusted for deflation measured at 0.1 per cent by the BRC-Nielsen Shop Price Index (SPI), August sales grew by 1.2 per cent.

Total Food sales in September increased 5.0 per cent versus September 2016, when they had increased by 0.7 per cent.

This makes the twelve-month average growth 2.7 per cent, the highest since Dec 2013.

Total Non-Food sales declined 2.0 per cent compared to September 2016, when they had decreased by 1.7 per cent.

This is an improvement on the twelve-month average decline of 2.7 per cent.

Adjusted for the estimated effect of Online sales, Total Non-Food sales rose by 0.4 per cent versus September 2016, when they had increased by 0.7 per cent.

On a three-month basis, the Online-adjusted Total Non-Food change increased by 0.3 per cent, below the UK growth of 0.9 per cent.

Ewan MacDonald-Russell, head of policy and external affairs at Scottish Retail Consortium, said: “A bumper month for grocers as strong food sales helped overall Scottish retail sales grow by 1.2 per cent in real terms. Food sales of 5.0 per cent have pushed the 12-month average up to the highest level since December 2013.

“Clothing sales were also comparatively quite strong, leading to the second best growth of Non-Food sales this year. The continued growth of online Non-Food sales was enough to offset a two per cent fall in stores. However, there is no evidence nervous shoppers are committing to larger purchases; indicating that consumer confidence remains at best fragile.

“The evidence that rising inflation continues to soak up a large proportion of household earnings; which should provide politicians considering imposing costs on consumers with serious food for thought.”

Craig Cavin, head of retail in Scotland at KPMG, said: “Total retail sales in Scotland increased by a reasonable 1.1 per cent in September, albeit buoyed by a sustained uplift in food sales. On a 12-month basis, Food sales growth is now standing at 2.7 per cent - the highest since December 2013. Price inflation undoubtedly continues to be a key driver of this growth.

“Clothing was a big winner in September, with mid-season discounts on autumn ranges tempting consumers to restock their wardrobes. The change in season also positively influenced health and beauty sales, with both high-end and essential cosmetics brands seeing growth following seasonal promotions.

“Smaller home improvement goods performed well over September, as Scottish consumers fine-tuned their homes in preparation for winter. Growth was also reported in mobile technology, accessories and gaming, with the latest smartphones and major computer games providing a welcome boost to sales in September.”