January 2026 has ushered in positive news for Scottish retailers, with both sales and shopper visits exhibiting significant growth compared to the previous year. According to recent data from the Scottish Retail Consortium (SRC) and KPMG, these encouraging figures signal a potential recovery for the retail sector following a challenging 2025.
Sales Surge in Scotland
The latest statistics reveal that total retail sales in Scotland increased by 3.3% in January compared to the same month last year, translating to a real-terms growth of 1.7%. This marks a notable improvement from January 2025, which saw a mere 1.5% increase. Non-food items particularly thrived, with sales rising by 4.4%, a stark contrast to the modest 0.6% growth recorded in January the previous year. Food sales also contributed positively, rising by 2%, albeit lower than the 2.5% increase seen a year earlier.
Ewan MacDonald-Russell, deputy head of the SRC, stated, “While January may have brought some dismal weather to Scotland, shopkeepers enjoyed a bright start to 2026, with sales increasing by 1.7% in real terms. This was the best performance since April 2025.”
Footfall on the Rise
Footfall in Scottish shops has similarly rebounded, recording a remarkable 5.1% increase year-on-year—the highest rise of any UK region. Major cities like Edinburgh and Glasgow led the way, with footfall growing by 5.5% and 4.8%, respectively. This uptick comes after a disappointing December, which saw footfall decline by 1.5%, highlighting the contrasting fortunes within just a few weeks.
The SCR-Sensormatic Footfall Monitor also indicated that shopping centres and retail parks experienced a surge in visitor numbers, with increases of 4.9% and 5.3%, respectively. MacDonald-Russell noted, “This is the best performance since last April,” but cautioned that part of the rise stems from comparisons to last year’s figures affected by Storm Eowyn.
Consumer Caution Persists
Despite the positive figures, experts urge caution. While January’s sales were buoyed by promotional strategies and consumer interest, the underlying economic climate remains uncertain. Linda Ellett, head of consumer, retail and leisure at KPMG, remarked that many retailers succeeded in enticing consumers to spend, particularly in categories such as personal electronics and children’s clothing.
“Retailers will be pleased that their promotional strategies worked in January, yet they remain acutely aware of the challenge of consistently growing sales volumes as consumers continue to be cautious and savvy with their spending,” Ellett noted.
A Cautious Optimism for the Future
Retail consultant Andy Sumpter highlighted that while the increase in footfall was partly driven by last year’s disruptions, it still represents the strongest performance across the UK. He stated, “Scotland’s early year uplift provides a solid platform. After a challenging eight months of negative footfall, some may feel this is the month when footfall finally found firmer ground.”
As retailers aim to build on this momentum, the industry hopes that February will bring even more favourable conditions, especially if weather improves, encouraging shoppers to return to town and city centres.
Why it Matters
The resurgence in sales and foot traffic is a vital indicator of the health of Scotland’s retail sector, reflecting broader economic sentiments. A thriving retail environment not only supports local economies and job creation but also instils confidence among consumers and businesses alike. As retailers navigate the complexities of post-pandemic recovery, sustaining this growth trend will be crucial for long-term stability and investment in the region.
