Scotland’s retail bosses plead for ‘dose of realism’ amid Middle East fears after sales grind to halt

Retail industry leaders have called for a “dose of realism” from policymakers after Scottish high street sales ground to a halt last month.

New figures from the Scottish Retail Consortium (SRC) and KPMG show that total sales north of the Border were flat in February, compared with the same month last year. The disappointing result follows a decline in shopper footfall and comes despite a timely, but temporary, boost from Valentine’s Day.

David Lonsdale, SRC director, said: “Scottish retail sales slowed to a halt in February. Worries that January’s sparkling showing was an outlier appear to have been confirmed with flat sales figures correlating with a fall in shopper footfall.

The retail sector is facing a dreary outlook amid the negative impact from the Middle East crisis.

“Purchases associated with Valentine’s Day were a bright spot, buoyed by sales of perfumes, cosmetics, watches and jewellery as Scots treated loved ones. Food sales also did well during the month. In contrast, receipts from sales of clothing, footwear, and furniture underwhelmed.

“This brings an end to a seven-month run of pedestrian but nonetheless positive growth. It reinforces our concern that the challenges for retail are far from being in the rear-view mirror.”

The latest figures show that once adjusted for inflation, there was a year-on-year decrease in overall sales of 1.1 per cent.

Total food sales in Scotland increased by 1.2 per cent compared with February 2025, but total non-food sales fell by 1 per cent, year on year. Adjusted for the effect of online trading, those non-food sales were down by 1.5 per cent.

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Lonsdale said the cost and inflationary pressures affecting households and businesses “remain real” and were likely to be exacerbated by any prolonged conflict in the Middle East, “which may make for a bumpy few months ahead”.

He added: “As such, it is imperative that the political parties seeking to form the next Scottish government think carefully about the real-world impacts of their proposals and avoid layering even more regulatory and cost burdens onto business.

“Without a dose of realism and restraint from policymakers, Scotland’s retailers will struggle to invest in stores, high streets, and in keeping down prices for shoppers.”

Linda Ellett, UK head of consumer, retail and leisure at KPMG, which helps compile the monthly retail sales monitor, said: “After a strong January came a disappointing February, with no sales growth overall for Scottish retailers.

“While some channels, categories and brands are showing there is still room to thrive, the combination of ongoing business costs and limited consumer spending is challenging others - with efficiency drives and technological transformation continuing at pace.”

The monitor revealed that total sales in Scotland were flat last month compared with February 2025, when they had decreased by 0.4 per cent. This was below the three-month average increase of 1.2 per cent and below the 12-month average increase of 1 per cent. The latest statistics cover the four-week period from February 1 to 28.

The retail sector has been hit hard by rising costs particularly relating to labour and national insurance.