The survey showed that the balance for retail sales compared with seasonal norms deteriorated to -40 per cent in June from -35 per cent in May, the weakest reading since January 2024. Year-on-year retail sales volumes also fell at a faster pace, with the balance worsening to -54 per cent from -46 per cent in May. Retailers expect sales to remain below seasonal norms in July, although the annual rate of decline is projected to moderate slightly to -45 per cent, CBI said in a press release.
UK retail sales weakened further in June, with sales falling below seasonal norms to the greatest extent in over two years, according to the Confederation of British Industry (CBI).
Year-on-year retail sales also declined more sharply as weak consumer confidence and rising costs weighed on demand.
While online sales are expected to recover in July, retailers anticipate overall sales will remain subdued.
The broader distribution sector also remained under pressure. Total distribution sales volumes declined at a similar pace to May, with the balance at -33 per cent compared with -35 per cent a month earlier. However, the contraction is expected to deepen to -41 per cent in July. Wholesale sales fell at a slower pace in June but are expected to decline more sharply next month.
Online retail provided one positive sign, with internet sales remaining flat in June after growing in May. Retailers expect online sales to strengthen significantly in July, with the balance rising to +37 per cent.
Commenting on the findings, Martin Sartorius, lead economist at the Confederation of British Industry (CBI), said retailers experienced a disappointing start to the summer, with sales falling well below seasonal expectations amid weak consumer sentiment and rising business costs. He added that wholesalers also continued to report significant declines in sales.
Sartorius urged the government to provide greater policy clarity and reduce the cost of doing business through meaningful business rates reform, a balanced approach to employment legislation and measures to improve the UK’s energy cost competitiveness.
The survey also found that retailers reduced orders placed with suppliers at a slower pace during June, while stock levels relative to expected sales moved closer to their long-term average and are expected to remain broadly stable next month.
Fibre2Fashion News Desk (CG)
