The Confederation of British Industry (CBI) reports retail sales volumes in the UK have experienced a second consecutive month of decline, indicating ongoing challenges in trading conditions. Despite this, there is an expectation of sales volumes stabilising in the upcoming month.
UK retail sales decline is projected to stabilise next month after a weighted balance of -9 per cent decline for the year until June, according to the CBI Distributive Trades Survey.
Orders to suppliers slowed their decline in June at -10 per cent and are expected to continue at a similar pace of -9 per cent. Meanwhile, stock volumes are anticipated to remain high at 26 per cent in relation to anticipated sales, reaching the highest level since May 2020.
Martin Sartorius, CBI principal economist, highlighted the challenging trading environment for the retail sector, with another contraction in the sales volumes.
High inflation has put pressure on households’ finances, leading to ongoing challenging demand conditions for the retailers even as Sartorius emphasised the need to redesign ‘the relationship between businesses, local authorities, and communities, as retailers are disproportionately affected by the business rates system compared to the other sectors’.
