Scottish retail sales stagnated in July as rising economic uncertainty prompted consumers to tighten their belts, according to new figures from the Scottish Retail Consortium (SRC) and KPMG.
Total sales were up just 0.1% compared to July 2024, when they had already fallen by 0.9%. Once adjusted for inflation, that equates to a year-on-year decline of 0.5%.
Food sales fell 1.4% against the same month last year, despite a strong start fuelled by warm weather that boosted demand for barbecue supplies and summer meals. Non-food sales fared better, rising by 1.4%, with mobile phones, toys and some furniture ranges performing well. However, television sales continued to lag, and fashion sales also struggled, with shoppers thought to have made their summer purchases earlier in the year.
Ewan MacDonald-Russell, deputy head of the SRC, described the overall picture as “lacklustre”. He said: “Within the general disappointment there were some bright spots. Phone sales did well, as did some toys and furniture ranges, but televisions continue to disappoint. The harsh truth is Scots are holding back spending as worries about the economy grow.”
Linda Ellett, UK head of consumer, retail and leisure at KPMG, warned that the trading environment remains “challenging” for many retailers, with inflation, rising employment costs and subdued demand for big-ticket items all contributing to the slowdown.
While pockets of strong performance were recorded in July, both the SRC and KPMG cautioned that sustained consumer caution could continue to impact retailers in the months ahead.
