Like-for-like sales in September were 3.3% higher than in September 2006, when they had risen 3.2%. Total sales in September were 8.3% up on a year ago. September's like-for-like sales were the best since April 2007 when warm weather and Easter boosted sales.
Clothing and footwear sales benefited from the colder end to the month, but remained lower than a year ago. Homewares were mixed, amid growing signs that larger discretionary purchases are being affected by interest rate rises. Food sales growth slowed marginally. Scotland continued to outperform the UK, which saw 3.0% like-for-like growth in September.
Fiona Moriarty, Director of the Scottish Retail Consortium, said: "Overall trading conditions are challenging with underlying caution increasingly apparent, particularly in the homewares and electricals sector where consumers seem to be holding back on purchasing big ticket items as they await any further movements in interest rates. However the coldest September since 1994 prompted a slight recovery for the clothing and footwear sectors, which recorded improved trading compared to last month as a result of increased demand for winter clothes and boots."
"Retailers will now be hoping for a period of economic stability, in the anticipation that consumer confidence will be sustained in the lead up to Christmas."
David Fenton, Senior Economic Adviser at The Royal Bank of Scotland Group, said: “Scottish retailers are experiencing an Indian summer at the tills, thanks to promotional activities and the underlying strength of consumer spending. In keeping with recent trends, large food retailers continued to enjoy the best of these good conditions, by taking an increasing share of non-food spending.”
Commentary:
The improvement in retail sales in Scotland recorded during August continued throughout September. The rate of growth in total retail sales (including stores opened in the last year) reached 8.3% in September, the fastest rate of growth in six months. Food sales continue to pick up the pace with growth climbing to 9.4%. The underlying three month trend is also rising (8.4%). Growth in non-food sales accelerated to 7.4% from 5.4% last month, also the fastest rate of growth in six months and well above the three month average (6%).
The pick-up in growth also recovered on a like-for-like basis with sales growth reaching 3.3%, above the recent six month average (2.9%). Food sales growth dipped slightly, falling to 3.3% from 3.7% the previous month but remain close to the recent six month average (3.6%).
Non-food sales growth doubled from 1.6% to 3.2% helping drive the overall increase in like-for-like sales and showing that the increase in total sales was not purely driven by greater floor space. Non-food like-for-like sales are now well above the recent six month average (2.3%) and the underlying three month trend has improved for two consecutive months.
Non-food sales growth continues to be driven by retailers outwith the clothing and footwear sector where both like-for-like and total sales growth continue to do well. By comparison, the clothing and footwear sector continues to face tougher trading conditions with like-for-like sales growth continuing to fall.
