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Nigel TAYLOR Published
October 19, 2025
Scottish consumers continued to spend cautiously with a focus on buying necessities in September. But the good news is that fashion and clothing “emerged as the standout performers… and did better than in recent months with customers stocking up their autumnal wardrobes”, according to the latest report from the SRC-KPMG Scottish Retail Monitor.
That could be linked to cooler weather in Scotland of late compared to much of England and Wales.
However, in a cautionary note, the report noted that the upcoming holiday season “may prove to be one of the most critical 'golden quarters' in recent memory”.
Total sales in Scotland increased 6.1% year-on-year in the five weeks to 30 September, albeit down on the 6.5% recorded in the year-ago month. But this was above the three-month average increase of 5.5% albeit below the 12-month average growth of 8.4%. That said, adjusted for inflation, the year-on-year decline was 0.1%.
Total Non-Food sales increased 3.5% last month compared to last September when they increased by 3.9%. Again, this was above the three-month average increase of 2.6% but below the 12-month average of 5.1%.
Adjusted for the estimated effect of online sales, total Non-Food sales increased 1.9% compared to a 3% rise a year ago.
Despite consumers’ caution, Ewan MacDonald Russell, Head of Policy & External Affairs at the Scottish Retail Consortium, said the latest numbers gave “a better picture than elsewhere in the United Kingdom, driven in part by more seasonable weather”.
However, he added: “Retailers continue to find shoppers are reluctant to purchase full-price products, instead only buying when the right discounts are available. Similarly with consumer confidence still heavily depressed, larger or high value furniture and electrical products performed poorly."
And the outlook? “Trading is likely to remain very challenging in the coming months as households grapple with higher winter energy bills alongside their existing outgoings. For retailers, the challenge will be trying to maintain sales volumes without succumbing to the temptation to start discounting stock too early ahead of Christmas. Government can help by looking to rule out at the earliest opportunities any further measures which will hit the spending power of modest and less affluent Scottish households.”
Paul Martin, Partner, UK Head of Retail/KPMG, added: “Sales are still being dented by inflationary pressure, and after years of battling adversity, the resilience of the retail industry is being tested. We're seeing a growing divide between the strongest and weakest players on the high street, making the impending battle for Christmas shoppers likely to be very intense this year.
“We are already seeing early and abundant promotions aimed at loosening tight household budgets and consumers are focused on securing the best deals, with pricing playing a pivotal role in purchasing decisions.”