UK retail sales decline again amid tough trading: CBI

A weighted balance of -9 per cent retail sales decline was found for the year to June, but this is anticipated to halt next month at 0 per cent, according to the latest CBI Distributive Trades Survey.

Orders to suppliers slowed their decline in June at -10 per cent from -30 per cent in May and are expected to continue at a similar pace at -9 per cent. Stock volumes, the highest since May 2020, are expected to remain high in relation to anticipated sales at 26 per cent.

Online sales volumes rebounded significantly in June—at 26 per cent from -9 per cent in May with similar growth expected next month at 27 per cent. Despite the challenges, retail sales volumes were reported as average for the season and are expected to stay in line with seasonal norms next month at -2 per cent.

In the distribution sector, wholesale volumes fell more quickly in June at -15 per cent from -5 per cent in May, with a slower pace of contraction expected next month at -8 per cent.

The survey included 140 companies, with 59 being retailers.

Martin Sartorius, CBI principal economist, said: “Another contraction in sales volumes attests to the difficult trading environment being faced by the retail sector. Households’ finances are still under pressure from high inflation, which means that demand conditions for retailers are likely to remain challenging in the coming months.

“Retailers continue to be disproportionately affected by the business rates system when compared to other sectors. There is a real opportunity—and a real need—to redesign the relationship between businesses, local authorities, and the communities they both serve.”

Fibre2Fashion News Desk (NB)