Retail

UK Retailers Report Falling Sales, More Weakness Ahead: CBI

Share this article

British retailers reported a year-on-year fall in sales in June and expect sales next month to be well below normal for the time of year as the surging cost of living erodes shoppers' disposable income, a survey showed on Thursday.

The Confederation of British Industry said the balance of retailers reporting sales below normal, rather than above normal, fell to -19 in June from zero in May, and was expected to decline further to -25 in July.

The CBI's headline sales balance for June, which compares sales volumes with a year earlier, dropped to -5 from -1 in May.

'Squeeze On Household Incomes'

"Retail volumes are struggling as high inflation eats away at consumers' budgets. The squeeze on household incomes appears to have offset any boost to activity from the extended Platinum Jubilee bank holiday earlier this month," CBI economist Ben Jones said.

Lower demand from shoppers is also causing retailers to cut orders with suppliers.

"Wholesalers (are) seeing a 14-month period of robust sales growth come to a grinding halt this month," Jones said.

Read More: UK Grocery Bills Set To Rise By £380 Per Year, Says Kantar

Official figures on Wednesday showed consumer price inflation rose to 9.1% in May, its highest in more than 40 years, and the Bank of England forecasts it will exceed 11% in October when household energy tariffs are due to rise by 40%.

The CBI survey took place from 27 May to 14 June, and was based on replies from 100 companies, including 39 retail chains.

News by Reuters, edited by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days

Copyright © 2022. All rights reserved. Developed by Square1 and powered by PublisherPlus.com