Scottish retailers spooked after Halloween fails to lift sales

Scotland's high streets continued to struggle last month despite the return of Halloween festivities, according to retailers.

Overall sales slumped by more than 11% in October, compared with the same trading period two years ago.

This was despite sales of confectionery and children's costumes being buoyed by the return of guising, which had been curtailed last year by the pandemic.

The Scottish Retail Consortium (SRC) described the figures as "frightening".

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On a positive note, clothing and footwear performed well, with sales being driven in part by a modest return to office working.

And SRC said early Christmas-related purchases could be seen in gifting, advent calendars and decorations.

But furniture purchases "remained weak", while grocery sales cooled as people ate out.

Total food sales were down by 1.3% on a year ago, while the non-food category was up by 4.8%.

Food sales were down on the same period last year, according to SRC figures

SRC director David Lonsdale said: "It was a month when households contended with spikes in the cost of living, notably energy bills and prices at the petrol pump, as well as the end of furlough, and as parts of the retail industry were challenged by shipping and stock shortages.

"This underwhelming performance is especially disconcerting as October is traditionally the third biggest retail month of the year and usually heralds the start of festive trading."

He added: "This sustained weakness in Scottish retail sales, a 10th down on pre-pandemic levels, is alarming, more so with further rises in the cost of living already baked in to the public policy pipeline.

"It comes during a critical moment in the year when stores need to generate the revenues which will tide them through the lean early months in the new year."

Christmas hopes

KPMG UK's head of retail, Paul Martin, said: "With rising costs putting a strain on most retailers, they will be placing all hopes that demand remains strong as consumers plan for a bumper Christmas, shopping early for those much-wanted gifts and spending more than last year when Christmas gatherings were cancelled."

On Monday, 13 business organisations called on the Scottish government to provide a business rate discount for all shops in the next financial year, arguing that that the retail industry was still "struggling in the shadow" of Covid.

The Scottish government said it acknowledged the "tough trading conditions" the sector was facing.