Robust weekly sales reported by retailer John Lewis were welcomed as a sign that consumers are feeling increasingly confident about their finances.
The store chain, part of the employee-owned John Lewis Partnership, revealed that its sales rose 9.3% year-on-year in the week to April 5, driven by online shoppers.
This was despite a 3% year-on-year fall-off in sales in the week at its Aberdeen branch.
Waitrose, also part of the partnership, enjoyed a sales increase of 20.6% in the same period, bucking a trend among food retailers that are struggling with having to slash prices.
Tesco, Asda and Morrisons have together pledged £2.4billion in lower prices to compete with fast-growing discounters.
Online sales at John Lewis rose 24.6% year-on-year in the week.
Twenty-two of the 39 John Lewis stores that have been trading for at least a year saw year-on-year sales growth, driven by homeware and furnishings, up 9.8%, fashion, up 9.4% and electrical and home technology, up 8.8%.
Howard Archer, chief UK and European economist for IHS Global Insight, said the “robust” figures “suggest that consumers have started off the second quarter on an upbeat note”.
He credited higher consumer confidence, higher employment and the “substantially improving” housing market as being fillips for consumers loosening their wallets.
Mr Archer said: “In addition, the squeeze on purchasing power is easing, largely due to lower inflation, although there are also now mounting signs that earnings growth is trending up from very low levels.
“Indeed, with consumer price inflation falling to a 52-month low of 1.7% in February and with headline earnings growth improving to 1.7% in January itself, it is the first time since early 2010 that inflation has not been above earnings growth.
“It was 2008 when earnings were last consistently above inflation.”
This should be encouraging news for retailers, as consumers purchasing power is expected to pick up over the coming months as inflation remains muted and earnings growth strengthens, he added.
“Indeed, data out next week are likely to indicate that annual earnings growth, seen up to 2% in February itself, has moved above inflation, which was seen down to a 53-month low of 1.5% in March from 1.7% in April,” Mr Archer said.