Scottish retail sales remained largely unchanged in October, according to the latest figures released by the Scottish Retail Consortium (SRC) and KPMG.
Figures from the Scottish Retail Consortium (SRC) KPMG Scottish retail sales monitor show that total sales in Scotland decreased by 0.7% last month compared with October 2023, when they had grown 2.9%.
David Lonsdale, director of the SRC, commented on the findings:
“Sales rose by a microscopic 0.1 percent in October in real terms, an identical result to September and continuing a trend of essentially static trading which runs back to June.
“Food sales were slightly down, reflecting the adjustment in inflation against 2023, and perhaps giving households a little headroom for more discretionary spending.
“Perhaps consequentially more discretionary-focused high street trading was slightly up, with Halloween related purchases, and beauty products including early sales of advent calendars showing that shoppers are turning their attention to Christmas.
“These figures will provide little solace for retailers who would have hoped for something a little sweeter after being hit with a flood of new costs in a bitter UK Budget.
“Stores will be hoping for bumper sales in the next two crucial trading months to try to deliver the revenues to pay the hundreds of millions of extra costs Scotland’s retailers were hit with last week.
“They will also be looking nervously to the upcoming Scottish budget and hoping there are no further expensive surprises.”
Linda Ellett, UK head of consumer, retail and leisure at KPMG, noted:
“The promotional weeks around Black Friday will be the first real test of post-Budget consumer sentiment, with retailers looking to electronics promotions and new AI-linked products to build on the computing and mobile phone sales growth that has been one of the better areas of sales performance in recent months.”
The combination of falling inflation, stabilising interest rates, and potential changes in consumer confidence may play a significant role in determining retail performance in the coming months.
