UK retail sales volumes fell in the year to August at the fastest pace since coronavirus pandemic lockdowns in March 2021, according to new data from the Confederation of British Industry (CBI).
The balance of retailers that reported a sales decline rose to 44%, a level seen only once between the pandemic and the global financial crisis in 2008, according to a weighted poll of CBI retailer members.
Gloomy set of results in our latest retail survey:
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— Martin Sartorius (@SartoriusMartin) August 24, 2023
Sales are expected to continue to contract next month, but at a slower pace, the survey found.
Martin Sartorius, the CBI’s principal economist, said: "Retail sales in August fell at their quickest pace in over two years, culminating a summer that many retailers would rather forget."
"Against a backdrop of rising interest rates and weak demand, retailers foresee cuts to investment over the next year, while employment is expected to fall again next month."
Susannah Streeter at Hargreaves Lansdown said: "August has been a washout for the high street as shoppers have turned increasingly cautious, with households’ budgets facing a big squeeze."
"The CBI’s snapshot of the retail scene shows darkening skies, with sales falling at a much quicker pace than last month, and at the fastest rate since March 2021."