According to the latest figures from the Scottish Retail Consortium (SRC), total sales for the four weeks to 2 August 2025 showed a marginal headline increase of 0.1% compared to the previous year. However, once adjusted for inflation, the data reveals a year-on-year decrease in sales volume.

The results showed a clear divide between sectors. Total food sales declined by 1.4%, while non-food sales saw a contrasting increase of 1.4%. The UK’s fifth warmest July on record provided a temporary boost, with strong sales of barbecue food, summer meals, and some home appliances.

Ewan MacDonald-Russell of the SRC described the month as “lacklustre,” warning that retailers are being left “in the lurch” as they face rising operational costs without the necessary sales growth. He noted that while phones, toys, and some furniture ranges performed well, sales of televisions were disappointing despite a summer of sporting events.

Linda Ellett, UK Head of Consumer at KPMG, echoed this sentiment, stating that the trading environment remains “challenging.” She observed that while many consumers are managing their monthly budgets, big-ticket purchases are being postponed. “Holidays are the priority for many this summer,” Ellett commented, adding that the higher cost of travel has left less disposable income for retail, where competition for consumer spending will remain “fierce.”

The outlook suggests that many Scottish retailers, especially those on the high street, face increasingly difficult choices in the coming months as consumer caution persists.