This performance comfortably outpaced both the three-month and twelve-month averages. Even when adjusted for inflation, the sector saw a real-terms increase of 1.7%, marking the strongest retail showing since April 2025.

The growth was largely driven by a robust appetite for non-food items, which surged by 4.4%. Consumers particularly favoured furniture, toys, beauty products, and personal electronics. When accounting for online transactions, non-food sales rose by an even more impressive 4.9%. Food sales also contributed to the upward trend with a 2% increase, bolstered by a seasonal interest in health and wellness products.

Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, said: “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.

“After a middling 2025 this is a bright start to the new year. However, with January being a traditionally fallow month even these sales will do little to bolster balance sheets after a disappointing peak trading season.  Retailers will hope this is the start of sustained growth, rather than a one-off.”

Linda Ellett, UK head of consumer, retail & leisure at KPMG, said: “The year started well for the retail sector in Scotland, with welcome sales growth.

“January sales enticed consumers to spend, with personal electronics, furniture, and children’s clothes and toys, all among the best performing categories. New year health and personal care goals led to related spending, including on wellness focussed food and drink items.

“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.”