Business rates hangover as Scotland’s retailers have Christmas to forget amid cost-of-living woes
“Those who did shop continued to take a parsimonious approach towards spending” – David Lonsdale, SRC
There was “little Christmas cheer” for many of Scotland’s retailers last month, industry leaders today warned, as firms brace themselves for a business rates hangover.
Between November 30 and January 3, total sales north of the Border increased by a “meagre” 0.4 per cent, compared with a year earlier, according to the latest sales monitor from the Scottish Retail Consortium (SRC) and KPMG.
The rise was below the three-month average increase of 0.8 per cent, and below the 12-month average, also 0.8 per cent. Adjusted for the effects of inflation, which is running at an annual rate of more than 3 per cent, there was a year-on-year decrease in sales last month of 0.2 per cent.
SRC director David Lonsdale said: “There was little Christmas cheer for Scotland’s shopkeepers as the total value of retail sales inched up by a meagre 0.4 per cent during December. Trading over the so-called ‘golden quarter’ fared a touch better but failed to sparkle and 2025 as a whole was frankly unspectacular.
“Lingering concerns over the cost of living and economy meant consumers were fewer in number and those who did shop continued to take a parsimonious approach towards spending.”
He added: “The festive period is key for many retailers as it’s when they generate the revenues that tide them over the fallow months early in the new year when bills still need to be paid. It remains to be seen whether this performance will be sufficient.
“After a Scottish Budget which fell well short of offering stores a business rate discount comparable to that on offer to counterparts in England all eyes now turn towards May’s election.”
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Total food sales by value increased 1.1 per cent last month compared with December 2024, according to the data. Total non-food sales decreased 0.1 per cent, year on year, and adjusted for the effect of online sales, they were down by 0.2 per cent.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: “While there are individual festive success stories among retailers, retail sales largely froze in December.”
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