Inflation ups challenge

CONVENIENCE stores across the country face a further challenge with inflation rates at the highest level since September 2013, says software provider Epos Now.

SRC director David Lonsdale.

Inflation, as recorded by the consumer price index, rose to 2.3% in the year to February, up from 1.8% in January.
Epos Now CEO Jacyn Heavens said: “Convenience stores are already facing an uphill battle to compete with discounting supermarkets.
“The rise of inflation is expected to continue and, as consumers begin to cut back on their spending, a trip to the convenience store could pay the price.

“At difficult times like this when consumer shopping habits may be forced to change, it is important the convenience stores do everything they can to closely monitor their margins to ensure they retain their custom and profits.”

David Lonsdale, director of the Scottish Retail Consortium, said the news comes as rising cost pressures are already contributing to higher prices at tills.

He said: “Moderating wage growth and rising inflation overall are eroding the spending power of Scottish households, and this will be reduced further due to higher council taxes from next month and increased statutory pension contributions from next year.

“With half of VAT receipts set to be assigned to the Holyrood Parliament our MSPs have a direct stake in improving consumer sentiment and flourishing retail industry.”