Covering the five weeks to 3 January 2026, total retail sales in Scotland rose by a meagre 0.4% year-on-year, failing to match the previous year’s growth or the three-month average. When adjusted for inflation, the picture appears even starker, showing a real-term year-on-year decrease of 0.2%.

The data indicates a clear divide in consumer priorities. Food sales managed to buck the negative trend, increasing by 1.1% as grocers engaged in fierce price competition on traditional Christmas staples. Conversely, non-food sales struggled, recording a decline of 0.1% compared to December 2024. Even when adjusted for the effect of online shopping, the non-food category remained in negative territory, highlighting a significant pullback in discretionary spending.

David Lonsdale, Director of the Scottish Retail Consortium, described the period as “unspectacular,” noting that lingering economic concerns forced consumers to adopt a parsimonious approach. While smaller luxuries such as cosmetics, perfumes, and toys performed reasonably well, sales of higher-value items like electronics and home textiles dwindled. Lonsdale also highlighted a shift in behaviour regarding festive aesthetics, with shoppers opting to reuse old decorations rather than purchasing new ones.

Shopping habits also appear to be shifting chronologically. Consumers capitalised heavily on Black Friday promotions earlier in the season or waited for post-Christmas discounting to use gift vouchers, leaving the weeks immediately preceding Christmas relatively quiet. Click and collect services provided a brief surge in activity just before the big day, but it was not enough to offset the broader slowdown.

The outlook for the new year remains challenging. Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, observed that retail sales largely “froze” in December as households prioritised spending on holidays and home improvements over retail goods. With the Scottish Budget offering less business rate relief than that seen in England, retailers now face the “fallow months” of early 2026 under significant financial pressure, turning industry attention toward the upcoming May election for potential policy support.