‘Worrying’ figures reveal state of Scotland’s retail sector ahead of golden quarter
“It is clear households are deeply concerned about the cost of living and economising in response” – Ewan MacDonald-Russell, SRC
Cash-strapped Scottish shoppers continued to rein in spending last month, “worrying” figures today revealed.
The latest sales monitor from the Scottish Retail Consortium (SRC) and KPMG shows that total sales north of the Border fell by 0.7 per cent in September, compared with the same month last year and after being adjusted for the effects of inflation.
Ewan MacDonald-Russell, deputy head of the SRC, said: “These are worrying figures for retailers ahead of the critical golden trading quarter at the end of the year. In the context of weak footfall and consumer confidence data it is clear households are deeply concerned about the cost of living and economising in response.”
He pointed to “some shafts of light” last month, with beauty products doing well as consumers focused on “small treats instead of lavish gifts”. Toy sales continued to perform well as did children’s clothing, but fashion overall and household purchases all struggled.
A breakdown of the data shows that total food sales increased by 1.6 per cent, year-on-year, while total non-food takings fell by 0.1 per cent, compared with September 2025.
MacDonald-Russell added: “What growth there was resulted from increased sales in the food category - albeit sales rose less than prices as the impact of the war in the Middle East continues to affect the economy.
“The upcoming UK Budget is a chance for the new Chancellor to set out a programme which keeps costs down for retailers and consumers. If Mr Healey takes the opposite approach, it may be a long cold winter for shoppers and retailers.”
Linda Ellett, UK head of consumer, retail and leisure at KPMG, which helps to compile the monthly sales monitor, said: “Scotland’s retail figures for September point to an increasingly selective consumer, with shoppers prioritising some categories while postponing purchases elsewhere.
“With the Black Friday promotional period approaching, if some of September’s weakness represents deferred rather than lost demand, there remains an opportunity for Scotland’s retailers to unlock spending. But they will need to balance customers’ increasing appetite for value against the need to protect margins,” she added.
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