The survey showed retail sales volumes contracted at a weighted balance of minus 26 per cent in the year to July, compared with minus 54 per cent in June. Sales are expected to fall at the same balance of minus 26 per cent in August.
United Kingdom retail sales volumes fell at a slower annual pace in July, with CBI’s weighted balance improving to minus 26 per cent from minus 54 per cent in June.
Retailers still saw sales below seasonal norms and expect August volumes to decline at a similar rate.
Online retail sales and supplier orders remained weak, affecting e-commerce demand and inventory planning.
Retailers judged sales for the time of year as poor, at a weighted balance of minus 18 per cent, improved from minus 40 per cent in June, while August sales are expected to fall short of seasonal norms at minus 29 per cent.
Online retail sales volumes dropped at a steep rate in the year to July, with the weighted balance moving to minus 47 per cent from 0 per cent in June. Online retail sales are expected to decline at a similar pace next month, at minus 48 per cent.
For retail supply chains, orders placed upon suppliers contracted at a faster pace in the year to July, with the weighted balance at minus 31 per cent compared with minus 26 per cent in June. The rate of decline is expected to accelerate further in August to minus 36 per cent.
Retail stock volumes relative to expected sales remained broadly in line with the long-run average in July, at plus 16 per cent compared with plus 19 per cent in June and a long-run average of plus 17 per cent. Stock positions are expected to soften slightly next month to plus 12 per cent.
Wholesale sales volumes were broadly unchanged in the year to July, at plus 2 per cent compared with minus 20 per cent in June, ending a run of 25 months of decline, the survey added.
Wholesalers expect sales to fall again next month, at minus 7 per cent. Total distribution sales volumes were broadly flat in the year to July, at plus 1 per cent compared with minus 33 per cent in June, marking the strongest reading since May 2024. Sales are set to contract at a modest rate next month, at minus 5 per cent.
Motor trades sales volumes rebounded in the year to July, growing at the fastest pace since April 2024, with a weighted balance of plus 57 per cent from minus 30 per cent in June, the survey data showed. Motor traders anticipate sales will continue growing at a rapid pace in August, at plus 50 per cent.
Martin Sartorius, lead economist, CBI said: “Retailers reported that the ongoing sales downturn lost steam in July, but a recovery still looks some way off as gloomy sentiment and elevated cost pressures weigh on activity. That said, conditions in the rest of the distribution sector were less downbeat, with wholesalers seeing stable volumes for the first time in over two years and motor trade sales rebounding.
“Distribution firms will welcome the Prime Minister’s focus on supporting local high streets and will be looking for broader business rates reform to address one of the key constraints on investment and growth. To deliver inclusive growth in every postcode, the government must also take further action to tackle rising labour costs while protecting labour market flexibility, so that the sector can continue to provide young people with rewarding routes into work.”
Fibre2Fashion News Desk
