Retailers across Scotland recorded their strongest sales growth in three years in July, according to the latest Scottish Retail Consortium (SRC)-KPMG Scottish Retail Sales Monitor.
Total retail sales in Scotland increased by 8.0% year-on-year during the four weeks to 1 August, significantly ahead of both the three-month average of 6.4% and the 12-month average of 2.0%. Once adjusted for inflation, sales were still up 7.1%, underlining the strength of consumer spending during the month.
While much of the growth came from non-food categories, local retailers will be encouraged that food sales returned to growth, rising 2.2% compared with July 2025. That marked an improvement on recent months and outperformed both the three-month and 12-month averages.
According to the SRC, warm weather and the start of the holiday season helped boost spending across a range of categories. Health and beauty products performed strongly, driven by demand for summer essentials such as sunscreen, while shoppers also spent more on clothing, footwear and holiday-related purchases.
For Scotland’s independent retailers and convenience stores, the figures suggest consumers remain willing to spend despite continued pressure on household budgets. Seasonal products, food-to-go, soft drinks and summer-related lines are likely to have benefited from the same trends seen across the wider retail market.
Ewan MacDonald-Russell, deputy head of the SRC, said July’s results represented a “new three-year high” for the industry, but warned retailers remain cautious about future trading conditions.
“There is no doubt these are fantastic sales figures for the industry, especially after several years of continually tepid growth and soaring cost pressures,” he said. “Whilst retailers can enjoy the heady rush of shoppers, they are all too aware that rougher waters may lie ahead.”
Looking ahead, he noted that inflationary pressures and wider global uncertainty could push sales values higher in the months ahead, even if underlying consumer demand becomes more challenging.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said the strong performance reflected a successful start to the summer season.
“The start of the holiday season delivered strong retail sales for Scotland in July,” she said. “Warmer weather has aided home entertaining and garden-related purchases, and Scotland’s retailers will be looking to continue the strong summer performance during August.”
