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Insider UK
Business
Lucinda Cameron & Peter A Walker

Festive spending helps boost retail sales

Christmas shopping and Black Friday helped boost sales last month giving retailers a “smidgen of hope”.

Total sales in Scotland last month increased by 8% compared with November 2021, when they had grown 2.6%, the Scottish Retail Consortium (SRC) and KPMG figures showed.

Adjusted for inflation, the year-on-year change was 0.6%.

On a like-for-like basis, Scottish sales increased by 5.5% compared with November 2021, when they had increased by 1.8%.

Ewan MacDonald Russell, deputy head of the SRC, said: “There was a small but welcome boost to Scottish retail sales in November as shoppers took advantage of discounts to belatedly begin their Christmas shopping.

“Sales rose by 0.6% in real terms as consumers took advantage of the plethora of deals around Black Friday.

“Food sales hit a record high of 12.5%, an inevitable consequence of record food price inflation, with non-food sales boosted by sales of colder-weather clothing as winter started to bite, and early Christmas gifting.“

He continued: “These figures will give retailers a smidgen of hope as we enter December’s make-or-break trade. However, that optimism is heavily tempered by the reality that household incomes remain significantly squeezed under the pressure of rising food and energy bills.

“Therefore, retailers will look with great interest at the Scottish budget tomorrow, hoping at the very least the Government follows the approach in England and Wales and freezes the business rate.”

The monitor covers the four weeks from 30 October to 26 November.

It showed that total non-food sales increased by 4.2% in November compared with November 2021, when they had increased by 6.7%.

Adjusted for the estimated effect of online sales, total non-food sales increased by 4% in November versus November 2021, when they had decreased by 7.5%.

SRC and KPMG said that the sales figures are not adjusted for inflation and with inflation running at historically high levels, a portion of the sales growth will be a reflection of rising prices rather than increased volumes.

Paul Martin, UK head of retail at KPMG, commented: “November sales growth may have been marginal, nevertheless things have moved in the right direction for Scottish retailers.

“Black Friday bargains gave a much-needed boost to retailers on the high street and online, who will be hoping that consumers who can afford to do so, continue to spend money on gifts and food this Christmas.

“For some struggling retailers already hit hard as consumer confidence and spending declines, and costs continue to rise, the next few weeks could be critical to their survival.”

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