Retail leaders make plea to Westminster and Holyrood after Scottish sales slide
“These flatlining figures weren’t a huge surprise, as shopper footfall during the month had faltered” – David Lonsdale, SRC
Upcoming fiscal statements on both sides of the Border should be “unabashed budgets for shoppers”, retail industry leaders have demanded, after a fall in high street sales.
David Lonsdale, director of the Scottish Retail Consortium (SRC), said UK and Scottish budgets would test whether policymakers are “paying attention to the travails of the retail industry” as it continues to grapple with elevated commodity and statutory cost pressures.
His remarks came as the latest Scottish retail sales monitor from the SRC and KPMG showed that total sales had dipped 0.2 per cent last month, compared with August 2025. Adjusted for the effects of inflation, there was a year-on-year fall of 1.8 per cent. The figures follow last week’s disappointing shopper footfall numbers for August.
Lonsdale said: “The growth in retail sales seen over late spring and summer petered out in August, with a small decline across both food and more discretionary categories. These flatlining figures weren’t a huge surprise, as shopper footfall during the month had faltered.
“Hopefully, this stagnation in sales will prove short-lived. What hasn’t stagnated however has been the growth in government initiatives impacting retail, which is a worry.
“The upcoming UK and Scottish budgets will test whether policymakers are paying attention to the travails of the retail industry. Both upcoming fiscal statements should be unabashed budgets for shoppers; which help retailers keep down prices, and which aid the rejuvenation of shopping destinations.”
The latest sales monitor revealed that total food sales in Scotland decreased by 0.2 per cent last month, compared with August 2025. Total non-food sales fell by a similar percentage, year on year, while adjusted for the effect of online takings, non-food sales were down by 0.4 per cent.
Lonsdale added: “Grocery sales dipped slightly, and have grown by a measly 0.4 per cent on average during each of the past 12 months. Discretionary categories have fared considerably better this past year, but growth there fizzled out too.
“The bright spot was computing and related items, which benefited from pupils and students returning to their studies after the summer break. Clothing performed so-so with shoppers looking to save by switching to pre-loved items instead of new. Footwear, furniture, and household appliances all struggled.”
Linda Ellett, UK head of consumer, retail and leisure at KPMG, which helps compile the monthly sales monitor, said: “Summer started strongly for Scotland’s retailers, but sales cooled off in August, failing to sustain another month of growth. Retailer focus now moves to planning for the final quarter of the year and the lead-in to Black Friday month.”
Last week’s data from the SRC and Sensormatic showed that overall footfall north of the Border decreased by 0.1 per cent in August, compared with the same month last year. Shopping centre footfall actually edged up, by 0.4 per cent, year on year, while retail park foot-traffic increased by 2.5 per cent, suggesting traditional high street shopping bore the brunt last month.
A geographic breakdown of the figures showed that footfall in Edinburgh nudged up by 0.6 per cent in August, while footfall in Glasgow lifted 0.3 per cent.
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