Scottish Retail Sales Drop for Second Consecutive Month Amid Middle East Conflict

Retail sales in Scotland declined by 1.2% in April 2026 compared to the same month in 2025, marking the second consecutive monthly decrease. Data from the Scottish Retail Consortium (SRC) and KPMG reveals that consumer confidence has been significantly impacted by the ongoing conflict in the Middle East, alongside rising domestic costs such as water charges, council tax, and fuel prices. When adjusted for inflation, the year-on-year decrease stands at 2.2%. Food sales were the hardest hit, plunging by 4.0%, as shoppers increasingly sought value through own-brand products and loyalty schemes. In contrast, non-food sales saw a modest 1.0% rise, with early signs of demand for televisions linked to upcoming major sporting events like the World Cup and Commonwealth Games. However, travel-related purchases remained weak. SRC director David Lonsdale and KPMG’s Linda Ellett described the figures as disappointing but not surprising, citing geopolitical tensions and early Easter timing as key factors. They urged the UK and Scottish governments to support retailers by reducing business rates, energy costs, and regulatory burdens to help keep shop prices down for households during this challenging economic period.