THE value of Scottish retail sales in September was up modestly on a year earlier, as the food category recorded a sharp increase partly because of surging prices, industry figures show.

The Scottish Retail Consortium’s latest monthly figures, published today, reveal that retail sales value north of the Border in September was up by 1.1 per cent on the same month of last year.

This represented a marginal acceleration from year-on-year growth in sales value of one per cent in August.

However, year-on-year growth in retail sales value in Scotland in September was well adrift of a corresponding pace of 2.3 per cent for the UK as a whole reported by the British Retail Consortium earlier this month. And the non-food category, which tends to reflect more discretionary consumer spending, remained weak at a time when household budgets are being squeezed hard by a renewed fall in real-terms pay.

The value of non-food sales in Scotland’s retail sector in September was down by two per cent on the same month of last year.

This contrasted with a five per cent year-on-year rise in sales value in the food category.

The SRC highlighted the part played in this increase by a surge in food prices.

It cited the latest shop-price index from the British Retail Consortium and market researcher Nielsen, which showed annual food price inflation in the UK as a whole in September was 2.2 per cent.

The SRC noted that, adjusting for this, the year-on-year rise in food sales in Scotland last month was 2.8 per cent in real terms.

Ewan MacDonald-Russell, head of policy and external affairs at the SRC, observed that clothing sales had been “comparatively quite strong” in September.

However, reflecting on the performance of the broader non-food category, he said: “There is no evidence nervous shoppers are committing to larger purchases - indicating that consumer confidence remains at best fragile.”

Mr MacDonald-Russell added: “The evidence that rising inflation continues to soak up a large proportion of household earnings…should provide politicians considering imposing costs on consumers with serious food for thought.”

Craig Cavin, head of retail in Scotland for accountancy firm and SRC survey sponsor 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, [average annual] 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.”

He added: “Clothing was a big winner in September, with mid-season discounts on autumn ranges tempting consumers to re-stock their wardrobes. The change in season also positively influenced health and beauty sales.”

However, the SRC figures show weakness in furniture sales in September.

They also show that, over the latest 12 months, the value of non-food sales in Scotland has on average fallen at a year-on-year rate of 2.7 per cent.

Flagging positives in the non-food category last month, Mr Cavin said: “Smaller home improvement goods performed well. Growth was also reported in mobile technology, accessories and gaming.”