UK retail sales volumes experienced a significant 43% year-on-year drop in July 2024 - an even steeper decline than the 24% decrease recorded in June, according to the latest Confederation of British Industry (CBI) Distributive Trades Survey.
The consecutive monthly fall has been attributed to adverse weather conditions and persistent market uncertainty.
The survey also indicates that retailers face disappointing sales for the time of year, with falls of 36% in July and 39% in June.
Orders placed with suppliers have similarly seen a rapid decline, dropping by 40% in July compared to June's 14% decrease.
Retailers anticipate this trend of reduced orders to persist into the next month, with expectations set at a 38% decline.
Meanwhile, stock levels have risen to their highest since June 2023, with retailers predicting that these will remain excessive in relation to anticipated sales.
The total distribution sector, encompassing retail, wholesale and motor trades, reported the sharpest decline in annual sales volumes since the beginning of the year, falling by 30% from a 9% drop in June 2024.
Sales are expected to continue to shrink at a similar rate the following month.
Wholesale sales volumes also saw a contraction, with a 21% fall from June's 12% decline. They are forecasted to continue falling at a comparable pace in August.
Retailers are also bracing for the sales downturn to persist into August, although at a reduced rate.
CBI principal economist Martin Sartorius said: "July marked a disappointing month for the distribution sector, with retailers feeling the sting from a harsh mix of unfavourable weather conditions and ongoing market uncertainty.
"While the downturn in sales volumes is set to continue next month, some firms expressed hope for an improvement in market conditions post-general election. The sector will now look for the new government to deliver on its bold reform agenda outlined in the King's Speech to supercharge growth to effectively aid households' finances and offer market stability."
