Retail sales volumes in the UK continued to decline in August 2024, according to the Confederation of British Industry (CBI) quarterly Distributive Trades Survey.
The report highlights a 27% year-on-year decrease in retail sales in August, showing a slight improvement from the 43% decline observed in July.
Go deeper with GlobalData
Retailers are expecting a further easing of the downturn to 17% in September.
The survey also noted that sales for the time of year were considered “poor,” with a 21% August decline, an improvement from the 36% reported in July.
The outlook for the retail sector appears cautious, with retailers anticipating a moderate deterioration in their business situation over the next three months, moving from a +2% positive outlook in May to a -13% negative forecast.
Selling price inflation, which accelerated to 30% in August from 20% in May, is still below the long-run average rate of 41%.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataRetailers expect this inflation to decrease to 15% in the following month.
Investment intentions among retailers have also turned more negative, with expectations to reduce investment up to August 2025 – a decline from 25% to 35%.
The total distribution sector, which includes retail, wholesale and motor trades, contracted moderately by 20% in the year to August, an improvement from the 30% decline seen in the previous month.
Internet sales volumes contracted at a moderate pace of 15% in the year to August 2024 compared to a 7% contraction in July, with expectations of a sharper fall of 30% in September.
Retail orders placed upon suppliers continued to decline at a similar pace as the previous month, with a 42% decrease in August compared to a 40% decrease in July.
CBI principal economist Martin Sartorius said: “Retail sales volumes continued to disappoint in the year to August, with contractions also being seen in the wholesale and motor trade sectors. Retailers reported increased caution regarding their investment and hiring plans, which seemed to reflect concerns about persistently weak demand conditions. Although households seem to still be feeling the pinch from the cost-of-living crisis, firms should gradually begin to see some tailwinds from consumers’ rising real incomes.
“The sector will want to see measures in the Budget this autumn to give certainty to firms and incentivise investment. Reforming business rates, introducing a business tax roadmap and changing the apprenticeship levy would help businesses to deliver on the government’s ambitions to supercharge the economy.”
