Total sales for the four weeks to 30 August 2025 increased by 1.1% compared to the same period last year, a significant improvement on the 0.5% decrease seen in August 2024. When adjusted for inflation, sales showed a real-terms increase of 0.3%.

The positive performance was driven almost entirely by the non-food sector, where sales grew by 2.4%. This was bolstered by a strong online performance, with non-food sales increasing by 3.3% when accounting for online shopping. In contrast, total food sales experienced a slight decline of 0.4%.

The sales uplift was fuelled by several key categories. The end of the summer holidays saw a surge in spending on “back-to-school” items, with computing and gaming consoles performing well. A continued upturn in the housing market also appeared to encourage spending on homeware, with furniture, DIY products, and garden goods all seeing growth. Health and beauty items continued their consistent run of positive sales.

However, the clothing and footwear sector weakened, with commentators suggesting a growing consumer preference for pre-loved items over new purchases.

Despite the encouraging figures, industry leaders have voiced concerns about the future. David Lonsdale, director of the Scottish Retail Consortium, described the situation as a “tricky balancing act”, as retailers contend with “spiralling government-mandated cost pressures”. With the crucial “golden quarter” of trading approaching, which includes Black Friday and Christmas, businesses are anxiously looking for relief in the upcoming UK and Scottish Budgets later this year.

Linda Ellett, UK head of consumer, retail & leisure, at KPMG, said: “The high summer temperatures continued throughout August, with retail sales also on the rise. 

“Non-food goods grew around 2%, with moderate growth in the housing market helping to continue the upturn in home related purchases. 

“Sales of many home goods have been seeing monthly increases since the spike in property transactions ahead of the Stamp Duty changes in April.  Home appliances, accessories, and DIY and garden goods all saw sales growth in August. New product launches also boosted mobile phone sales, with computing related purchases rising ahead of the new school year.

“Retailers will be reflecting upon their summer performance and what has and hasn’t sold well, as they plan their stock levels for the final ‘golden’ quarter of the year that includes Black Friday and Christmas.”