SRC: Retail sales wane as tax rises set to shackle Scots and shops

SRC: Retail sales wane as tax rises set to shackle Scots and shops

Scottish retail sales experienced a slight decline in February 2025, according to the latest figures.

Total sales decreased by 0.4% compared to the previous year, although when adjusted for inflation, there was a modest 0.3% increase. Like-for-like sales remained flat.

Food sales saw a 0.7% rise, while non-food sales fell by 1.3%. However, when online sales were factored in, the non-food decline moderated to 0.6%.

David Lonsdale, director of the Scottish Retail Consortium, said: “The total value of Scottish retail sales nudged down in February compared to the year before, albeit in real-terms – once adjusted for falling shop prices – they recorded a third successive month of growth.



“This was a more muted set of results and reflected the fall in shopper footfall which faded during February.

“Computing and furniture did well and grocery continued to grow. Valentine’s Day gave a lift to sales of jewellery, fragrances and chocolates. Purchases of toys and baby equipment however fell back, as did clothing and footwear, as the cold weather deterred shoppers from buying new Spring and Summer ranges.

“With soaring council tax and water bills just around the corner, and more than enough geo-political uncertainty abound, it remains to be seen how all of this impacts shoppers’ propensity to spend. What isn’t in doubt is the imposition of government-mandated tax rises from next month, from UK, Scottish, and local administrations, will shackle customers and retailers with substantial extra costs. That will serve to make trading even tougher for Scotland’s retailers.”

Linda Ellett, KPMG UK head of consumer, retail and leisure, said: “Scottish retail sales fell slightly in February, as consumers remained cautious with their spending.

“Many are continuing to prioritise saving, travel and experiences, with nervousness about the economy deferring other big ticket purchasing.   

“As we have seen already this year, retailers are increasingly reflecting upon online and in-store sales data, considering the implications of the recently announced employment cost rises and business rates pressure, and scrutinising where best to be located. Online shopping and the growth of social commerce has contributed to a lowering of demand for some physical retail stores and boardrooms will continue to keep a close eye on monthly footfall and sales data as 2025 progresses.”

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