An early start to Christmas shopping has given Scots retailers a lift in sales – despite many households still feeling the squeeze.
Sales increased 2.1% compared with October last year, with food purchases leading the rise.
The Scottish Retail Consortium (SRC) says the growth is reassuring after a September sales increase of 1.8% and a summer sales boost of 4% and 3.5% in July and August respectively. But October figures show like-for-like sales, which leave out factors such as new store openings, were down 0.5% on the previous year.
SRC director Fiona Moriarty said: “These figures show there’s all to play for as Christmas approaches. It’s reassuring to see a partial pick-up in growth after a disappointing slowdown in the previous month, but it’s clear many households are still feeling the squeeze and keen to keep money aside for seasonal spending closer to December.
“Overall this is an acceptable result which tallies with the relatively stable consumer confidence levels of the last few months. Retailers will be hoping that this very tentative boost gains some momentum as many of us start thinking about making some headway on our Christmas lists.”
Total food sales were 3% up on October last year.
Non-food sales increased by 1.3% with the relatively mild start to the month leading to subdued demand for warmer clothing and footwear.
David McCorquodale, head of retail at KPMG, said: “I remain cautiously optimistic and feel the level of discounting may be less than in previous seasons. Time will tell if the retailer will hold firm for margin or give way with pre-Christmas bargains.”
Inflation has fallen to its lowest level in over a year, official figures revealed yesterday as the Bank of England prepared to publish its latest quarterly outlook for the economy.
The sharper-than-expected drop in the Consumer Prices Index (CPI) rate from 2.7% in September to 2.2% in October was seen as easing pressure on the bank to lift historically-low interest rates.
The figure equals the level in September last year and takes it closer to the Bank’s target level of 2% for the first time in four years. It was last lower – 1.9% – in November 2009.