Scotland’s high streets facing twin threats as clock ticks down to Christmas

Releasing its latest sales monitor, industry body the Scottish Retail Consortium (SRC) said total sales north of the Border increased by 1.9 per cent in October, compared with the same month last year. Adjusted for the effects of inflation, that year-on-year gain was just 1 per cent.

SRC director David Lonsdale said: “October saw a modest but welcome further improvement in Scottish retail sales which edged up for a fourth consecutive month. This was the best monthly performance since April and an encouraging start to the golden quarter of trading, albeit to an extent was driven by shop price inflation rather than increased sales volumes.”

He noted that homeware and furniture had fared well as did food and festive-related purchases of decorations. However, clothing retailers reported challenges selling winter clothing due to the “variable” weather.

Lonsdale added: “With Christmas just around the corner we ought to be seeing a more confident mood among Scotland’s retailers. However, twin threats are to the fore.

“Firstly, consumer confidence remains shaky and won’t be helped by mooted increases in personal taxation which would lessen the amount people have available to spend in shops. The second threat is the risk of inaction on business rates.”

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Total food sales increased by 2.7 per cent last month compared with October 2024, while overall non-food sales were up 1.3 per cent, year on year. Adjusted for the effects of online trading, non-food sales rose by 1.2 per cent.

Linda Ellett, UK head of consumer, retail and leisure at KPMG, which helps compile the monthly monitor, said: “With Black Friday sales already getting underway and Christmas displays also now up in many stores, Scotland’s retailers are aiming to increase the sales growth seen in recent months.

“Our own research indicates that the majority of shoppers are considering purchases over the Black Friday period, and that AI will play a growing role in how consumers search for and find promotional offers or gifts. This tech evolution presents both challenges and benefits to retailers.”