Retailers enjoy ‘bright start to 2026’ as sales and footfall bounce back

Economists have hailed a “bright start to 2026” for Scottish retailers, after figures showed sales and footfall in January both saw their best performance since last April.

According to figures from the Scottish Retail Consortium (SRC) and KPMG, total sales in Scotland rose 3.3% compared with January 2025, amounting to a real-terms increase of 1.7%.

January last year saw a year-on-year rise of just 1.5%.

Non-food sales were up 4.4% this January – compared with a 0.6% increase the same time last year – while food sales were up 2%, compared with a 2.5% rise the year before.

Footfall in Scotland’s shops was also up by 5.1% compared with January 2025 – the highest increase of any UK region – while Edinburgh and Glasgow topped the list of UK cities, with growth of 5.5% and 4.8% respectively.

This comes after a December that had seen footfall decline year-on-year by minus 1.5%, capping what economists described as a “disappointing” 2025.

The SCR-Sensormatic Footfall Monitor figures also show the rise in footfall was felt in shopping centres (4.9%) and retail parks (5.3%).

Ewan MacDonald-Russell, deputy head of the SRC, said: “January may have brought some dismal weather to Scotland but at least shopkeepers enjoyed a bright start to 2026, with sales increasing by 1.7% in real terms.

“This was the best performance since April 2025, albeit the figures benefitted from comparison with the storm-hit figures last year.

“Sales of furniture, toys, and beauty did well across the month.

“However, the strong January sales are partly a result of shoppers deferring purchases until discounting brings goods down to a low enough price; with consumer confidence remaining uncertain.

“Retailers will hope this is the start of sustained growth, rather than a one-off.”

Mr MacDonald-Russell also described the rise in footfall as “the best performance since last April”.

He said: “A 5.1% increase was driven by the comparison with 2025 when much of the country was closed due to Storm Eowyn, but nonetheless is a fillip for shops after a disappointing festive period and the strongest performance across the four home nations.

“Scotland’s high streets have had a very difficult few years and sustained footfall will help to make the case for further investment.

“So all eyes will turn to February where hopefully brighter weather will encourage customers back to town and city centres.”

Linda Ellett, UK head of consumer, retail and leisure at KPMG, said January sales had “enticed” consumers to spend, with personal electronics and children’s clothes and toys performing particularly strongly.

She went on: “Many of Scotland’s retailers will be pleased that their promotional strategies worked in January, but they remain acutely aware of the challenge of consistently growing sales volumes when consumers continue to be cautious about, and savvy with, their spending.”

Andy Sumpter, retail consultant for Sensormatic Solutions, said Scotland’s footfall increase was partly due to last year’s shopper activity being disrupted by Storm Eowyn – but it was still the strongest performance in the UK.

He said: “As retailers continue to focus on value, experience and convenience, Scotland’s early year uplift provides a solid platform, and after a challenging spell of eight months of negative footfall, some may feel this is the month when footfall finally found firmer ground.”