Retail sales in Scotland fell for the second consecutive month as mounting concerns over the conflict in the Middle East and rising household costs weighed heavily on consumer confidence.
New figures released by the Scottish Retail Consortium and KPMG showed total sales dropped by 1.2 per cent in April compared with the same month last year.
Once inflation was taken into account, the decline deepened to 2.2 per cent, underlining the growing pressure on Scottish households.
Food sales suffered the sharpest downturn, plunging by 4 per cent year-on-year as consumers increasingly cut spending and turned to cheaper supermarket own-brand products and loyalty schemes to manage rising living costs.
Non-food sales performed slightly better, edging up by 1 per cent, although underlying demand remained weak once online sales were stripped out.
David Lonsdale, director of the Scottish Retail Consortium, said the downturn reflected both weakening confidence and the growing financial burden facing households.
“Concern over the implications of the situation in the Middle East weakened consumer confidence,” he said.
He added that families were simultaneously being squeezed by higher council tax bills, rising water charges and increasing fuel prices.
The latest figures suggest retailers are now facing a difficult spring and summer period despite hopes that major sporting events could provide a temporary spending boost.
Mr Lonsdale said there were early signs consumers were buying televisions ahead of Scotland’s participation in the FIFA World Cup and the upcoming Commonwealth Games in Glasgow.
Travel-related purchases, however, remained subdued.
Retail leaders warned that global instability was compounding an already difficult domestic environment for businesses and consumers alike.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, described the sales figures as “disappointing”.
“Consumer confidence has been further dampened by rising prices due to the Iran conflict,” she said.
“As a result, the retail sector is facing a challenging start to spring and summer.”
The retail industry is now urging both the UK and Scottish governments to reduce business costs and ease regulatory pressure amid fears that further economic shocks could deepen the slowdown.
Mr Lonsdale called for lower business rates and reduced energy-related charges for food retailers, warning that many of the pressures facing businesses were being intensified domestically, even if global events remained outside ministers’ control.
The figures add to broader concerns over the resilience of Britain’s consumer economy as geopolitical instability, inflationary pressures and weakening household spending continue to weigh on growth.
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