Retailers report another disappointing month as confidence remains fragile…

Retail sales endured their weakest seasonal performance in more than two years during June, according to new figures released by the CBI.

The latest CBI Distributive Trades Survey found retail sales were judged to be well below seasonal norms, with the weighted balance falling to -40% – the weakest reading since January 2024. Year-on-year sales volumes also deteriorated, dropping to -54% (down from -46% in May).

The slowdown extended beyond the High Street, with wholesalers reporting annual sales of -20%, while total distribution sales fell -33%.

Looking ahead, retailers expect conditions to remain subdued in July, although the pace of decline in annual retail sales is forecast to ease slightly to -45%.

“Retailers reported a gloomy start to the summer, with sales disappointing relative to seasonal norms to the greatest extent in over two years amid depressed consumer sentiment and rising cost pressures,” said Martin Sartorius, Lead Economist at the CBI.

He added that businesses need “clarity and stability” while confidence remains fragile, calling on the Government to tackle the cost of doing business through measures including business rates reform and action to reduce uncompetitive energy costs.