SRC: Inflation wipes out September sales growth for Scottish retailers

SRC: Inflation wipes out September sales growth for Scottish retailers

Scottish retail sales saw a modest increase of 1.3% in September compared to the same period last year, marking the third consecutive month of growth.

However, when adjusted for inflation, sales saw a real-terms decrease of 0.1%, highlighting the ongoing pressure on the sector.

The figures, which cover the five weeks from 31 August to 04 October 2025, show that the headline growth was driven by increases in both Food (up 1.1%) and Non-Food (up 1.4%) categories.



Adjusted for the effect of online sales, Non-Food sales in Scotland increased by 1.8% compared with September 2024, when they had increased by 1%. This was below the 3-month average increase of 2.2% and above the 12-month average increase of 1.4%.

Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, said: “Retail sales rose in line with shop price inflation in September as shoppers kept a canny eye on their finances. This is the third successive month of positive improving retail sales and the best monthly figure since April and hopefully signals some appetite from consumers ahead of the crucial Golden Trading Quarter starting in October.

“Furniture did well across the month alongside this years’ strong categories of gaming, health and beauty, and toys. Conversely fashion lines struggled as the combination of warmer weather and Storm Amy deterred high street shoppers from updating their wardrobes; albeit retailers will hope that spending is deferred rather than cancelled.

“The tough truth is retailers are having to run very fast just to keep pace with the very significant public policy costs imposed on them in last year’s UK and Scottish Budgets. With inflation still increasing and little sign of the long-promised uplift in economic growth as much pressure as ever will fall on strong trading over the crucial Christmas period.”

Linda Ellett, UK head of consumer, retail & leisure at KPMG, said: “Overall sales grew in September, driven largely by household goods and increased mobile phone sales, as prominent brands launched new models.

“However, non-food sales are only growing by around 1.7% on average over the last quarter in Scotland, indicating that spending continues to be very targeted as consumers remain cautious.

“As we enter the ‘golden’ quarter for the sector, retailers are planning product ranges and promotions to try and increase that rate of sales growth.”

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