Why Scottish high street hopes are ‘hanging by a thread’ as final Xmas countdown begins

Adjusted for inflation, there was a year-on-year fall of 0.5 per cent in overall sales last month, according to the latest retail sales monitor from the Scottish Retail Consortium (SRC) and KPMG.

Fashion, beauty and electrical sales were described as “mediocre” as nervousness about the economy and poor weather kept shoppers at home. Food sales were also disappointing, though strong competition between the big supermarket chains helped keep a lid on prices.

Ewan MacDonald-Russell, deputy head of the SRC, said: “Scottish retail hopes of a strong end to 2025 are hanging by a thread after disappointing November retail sales. Adjusted for inflation sales fell by 0.5 per cent, despite the inclusion of Black Friday.

“Retailers are now on tenterhooks for a last-minute surge in Christmas sales to round off what will otherwise be a humdrum year. However, if sales don’t materialise then retailers last hope will be the Scottish Government’s Budget in January.

“If the finance secretary doesn't deliver a business rates model which is at least as competitive as the new lower rates in England, then it will be a long winter for retailers.”

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Total food sales in Scotland nudged up 0.7 per cent last month, compared with November 2024, while total non-food sales decreased by 0.5 per cent, year on year.

Linda Ellett, UK head of consumer, retail and leisure, KPMG, said: “Scotland’s retailers will be disappointed that Black Friday period promotions failed to deliver the boost that they were hoping for, with household costs and nervousness about the economy continuing to impact discretionary buying. But, as the Christmas decorations go up, hopefully retail sales growth does too - ending 2025 with some festive cheer for the sector.”

A dozen retail groups and industry bodies this week jointly wrote to the Scottish finance secretary demanding a permanent business rates discount for all retailers. The collective call to Shona Robison comes ahead of the unveiling of the Scottish Government’s Budget next month and in the wake of a UK autumn Budget that introduced a permanent business rate discount for retailers in England.