Scottish retailers experienced a welcome boost in December 2024, with total sales increasing by 0.8% compared to the same month in 2023.
This growth, described as “solid” by industry experts, came as a relief after a challenging year for the sector.
The Scottish Retail Consortium (SRC) KPMG Scottish retail sales monitor revealed that when adjusted for inflation, there was a year-on-year increase of 1.8%. This performance marked the best monthly result of an otherwise flat golden trading quarter and tepid 2024.
David Lonsdale, Director of the SRC, commented on the figures:
“Overall, the value of Scottish retail sales rose by 1.8% in real terms during December. Food sales were flat, reflecting consumers cutting back a little alongside significant price competition between grocers competing for festive purchases.”
The non-food sector showed mixed results, with computing, gaming, home appliances, and health and beauty products performing well. However, sales of toys and home accessories were weak.
Online shopping saw an increase, partly driven by poor weather conditions in Scotland during December.
Despite the positive December figures, the overall picture for 2024 remained challenging. Lonsdale noted: “Sales in the crucial final golden trading quarter were identical to last year. That is indicative of a tough combination of household discretionary spending being limited, and much of what there is being spent on experiences rather than products”
Looking ahead to 2025, retailers are cautiously optimistic.
“Retailers will be hoping there are brighter skies ahead in 2025,” Lonsdale added. The December growth in Scotland outperformed the UK average, with total UK retail sales growing by 3.2% year-on-year in the same month.
However, for the entire year of 2024, UK total retail sales grew by just 0.7%, highlighting the ongoing challenges faced by the retail sector across the country.
As the industry moves into 2025, it will continue to navigate a complex landscape of consumer behaviour, economic pressures, and evolving retail trends.
