By Scott Wright

TOTAL retail sales in Scotland were down in October in real terms compared with the same month last year, as the sector got off to a disappointing start to the so-called “golden quarter.”

New figures from the Scottish Retail Consortium, published today, show that sales fell by 0.3 per cent year-on-year in October when adjusted for inflation, with retailers seeing little sign of a boost from the forthcoming World Cup or Halloween. The SRC said the industry’s struggles underline the need for the UK and Scottish Government to ease the pressure on retailers, which are contending with a cost of doing business crisis at a time of fragile consumer confidence.

Total sales increased by 6.3 per cent last month as prices were driven higher by inflation, compared with October 2021 when they had grown by 2%. However, when adjusted for inflation, the year-on-year change was -0.3%.

Annual UK consumer prices index inflation increased to 10.1% in the 12 months to September, with the pressure on household budgets further increased by rising interest rates, which the Bank of England recently lifted to 3% from 2.25%.

SRC director David Lonsdale said: “Retail sales slipped backwards in real terms in October as the rise in sales was outweighed by ever increasing inflation. Despite being the first month of the golden trading quarter, retailers will be disappointed not to have seen any surge in sales either for Halloween or early Christmas-related trading.

“Food volumes continue to fall, indicative that customers carry on having to pay more for fewer items. That is having a knock-on effect on more discretionary retail spending, with the few signs of life being purchases of energy saving items such as air fryers for cooking, heated clothing airers and blankets. Clothing sales in particular were poor, turning in the weakest performance since February, with customers failing to refresh autumn wardrobes. Even with the soccer World Cup just around the corner there was little sign customers were getting ready, with no discernible uplift in television sales.”

Mr Lonsdale said weak the trading was a “huge concern” as the industry heads into the key festive period. “With costs skyrocketing the pressure is building on retailers to deliver a good performance. However, the Scottish and UK governments need to urgently assess the costs they are adding to businesses and see where they could lighten the burden,” he said.

“Next month’s Scottish Budget provides a clear opportunity to do so through forestalling any inflation-matching uplift in the business rate.”