Festive boost for Scottish retail as sales edge up in December
Scottish retail sales experienced a slight uptick in December 2024, with a 0.8% increase compared to December 2023, when sales grew by 1.9%.
Adjusted for inflation, this represented a 1.8% year-on-year increase. This performance surpassed both the 3-month average decrease of 0.8% and the 12-month average decrease of 0.4%. Like-for-like sales also rose by 2.0%, outperforming both the 3-month and 12-month averages.
Food sales remained flat during the month (0.0%), a significant drop from the 5.5% growth seen in December 2023. Non-food sales saw a 1.5% increase, contrasting with the 1.1% decrease in the previous year. However, this was below the 3-month and 12-month average declines. When adjusted for online sales, non-food sales rose by 6.1%.
David Lonsdale, SRC director, said: “Scottish retail sales saw solid growth in December as Black Friday and Christmas helped retailers to their best monthly performance of an otherwise flat golden trading quarter and tepid 2024. Overall, the value of Scottish retail sales rose by 1.8 percent in real terms during December.
“Food sales were flat, reflecting consumers cutting back a little alongside significant price competition between grocers competing for festive purchases. Non-food trading was more mixed. Computing and gaming did well alongside home appliances and health and beauty products. Sales of toys and home accessories however were weak. Customers continued to increase their online shopping across Black Friday and in the run-up to Christmas; in part driven by the poor weather which hit Scotland in December.”
Mr Lonsdale continued: “As the Hogmanay bells tolled retailers won’t have been heartbroken to bid farewell to 2024. Sales in the crucial final golden trading quarter were identical to last year.
“That is indicative of a tough combination of household discretionary spending being limited, and much of what there is being spent on experiences rather than products. Retailers will be hoping there are brighter skies ahead in 2025.”
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: “With Black Friday falling as late as it did, this year it was part of the Christmas shopping season even more so than in previous years.
“December, coupled with Black Friday week at the end of November, delivered sales growth for retailers - with the likes of AI-enabled tech and beauty advent calendars boosting festive takings.
“However, there was no sales growth during the golden quarter of October to December in Scotland compared to last year, reflecting the ongoing careful management of many household budgets during a time when many costs remain at a heightened level.
“In 2025, we will see retailers increasingly utilising customer data and AI technology to deliver increased personalisation when it comes to targeting products and offers to their current, and potential, customers.”