Scottish retailers experienced a welcome upturn in January, with footfall rising by 1.0% compared to the previous year, marking a positive shift from December’s 1.5% decline.
This modest increase offers a glimmer of hope for the retail sector, which had faced challenges during the festive period.
Shopping centres and retail parks saw particularly encouraging growth, with the latter showing a robust 5.7% increase.
Scotland’s major cities also contributed to this positive trend, as Edinburgh and Glasgow both reversed their disappointing December performances with footfall increases of 2.8% and 1.9%, respectively.
Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, noted that shoppers braved the wintry conditions to visit retail destinations.
He expressed cautious optimism, suggesting that the slight rise might indicate some deferred spending to come in February.
However, it’s worth noting that Scotland’s performance, while positive, was not as strong as other parts of the UK, which faced fewer severe weather events.
The impact of winter storms and red weather alerts likely tempered the potential growth in footfall.
Retail parks emerged as the standout performers, demonstrating their resilience and appeal to consumers even in challenging weather conditions. This trend aligns with the broader UK picture, where retail park footfall increased by 7.9% year-on-year in January.
Despite the encouraging start to the year, retailers remain cautious about the future. The modest January increase, while welcome, is unlikely to fully offset the disappointing golden quarter of 2024.
The sector continues to face challenges, including rising labour costs and consumer demand for discounts, which may impact profit margins in the coming months.
As the retail landscape evolves, businesses will need to strike a delicate balance between optimising staffing to capitalise on increased footfall and managing costs effectively.
The coming months will reveal whether January’s uptick signals the beginning of a sustained recovery or if it’s merely a temporary reprieve for Scotland’s retail sector.
