Latest news with #CBIDistributiveTradesSurvey
Fibre2Fashion
01-08-2025
- Business
- Fibre2Fashion
UK retail sales slide for 10th month amid cost pressures: CBI
Retail sales volumes in the UK continued their downward trajectory in July, marking the tenth consecutive month of decline, according to the Confederation of British Industry (CBI). Though the pace of contraction eased slightly—with a weighted balance of -34 per cent from -46 per cent in June—retailers expect a similarly firm fall in sales next month (-31 per cent). Sales were again judged to be below seasonal norms, though less so than in June (-10 per cent vs -37 per cent). However, August expectations show a steeper seasonal shortfall (-36 per cent). Online retail offered a modest bright spot, expanding for the third month in a row at +4 per cent, with similar growth forecast for August, as per CBI Distributive Trades Survey – July 2025. Wholesale trade volumes declined at -32 per cent, broadly unchanged from June, and are projected to fall at a similar rate in August. The motor trade sector experienced the steepest fall since June 2020, with sales plunging by -77 per cent in July. Although a slight recovery is expected, another sharp drop of -57 per cent is anticipated in August. UK retail sales declined for the tenth straight month in July, down 34 per cent YoY, though the pace eased from June. Online sales rose modestly, while wholesale and motor trades also saw steep falls. Stock levels dipped below average, and supplier orders dropped at a slower rate. The CBI urged government action to boost business confidence amid ongoing cost pressures and economic uncertainty. Total distribution sales volumes, which include retail, wholesale, and motor trades, fell by -39 per cent in July, matching June's rate, and are forecast to contract slightly less at -34 per cent next month. 'Retail annual sales volumes continued to fall in July, although the pace of decline moderated from June's sharp drop. Firms reported that elevated price pressures—driven by rising labour costs—and economic uncertainty continue to weigh on household demand, which has contributed to sales volumes falling since October 2024,' said Martin Sartorius, principal economist at CBI. 'These trends of weak demand and uncertainty were mirrored across the wider distribution sector, with wholesale and motor trades also seeing declining sales.' He urged the government to take immediate steps to restore short-term business confidence by delivering a clear and supportive Autumn Budget, tackling regulatory burdens, and providing clarity on employment rights bill. Retailers also reported that supplier orders declined at a more moderate rate (-21 per cent from -51 per cent in June), with a further easing expected in August (-16 per cent). Stock levels in relation to expected demand fell below the long-run average at +12 per cent, with a similarly subdued outlook for next month (+10 per cent), added the survey. Fibre2Fashion News Desk (SG)
Fashion Network
26-06-2025
- Business
- Fashion Network
UK retail sales are weak in June and worse expected for July, says CBI
Retailers reported that annual sales volumes fell 'at a sharp pace in June', the latest CBI Distributive Trades Survey has shown. It meant the ninth month in a row of declining volumes and there will probably be a 10th as retailers expect sales to fall again in July. The CBI survey doesn't give actual sales figures but provides a weighted balance of the percentage of retailers saying sales fell or rose to one degree or another. So this time, the weight balance was -46% (that is, 46% of retailers saying sales fell) compared to -27% in May. And 49% expect sales 'to decline rapidly again next month'. Sales volumes for the time of year were judged to be 'poor' in June, to a greater extent than in May (-37% for June from -19% in May). Retailers expect July's sales to fall short of seasonal norms to a broadly similar degree (-38%). Online retail sales volumes rose slightly in the year to June (+6% from +37% in May) and are expected to grow again next month (+8%). Martin Sartorius, Principal Economist at the CBI, said: 'Retail sales volumes fell rapidly in the year to June, extending the recent downturn into its ninth consecutive month. Many firms report[ed] that consumer caution continues to hold back sales. These data suggest that underlying activity remains subdued in the distribution sector.'
Fashion Network
26-06-2025
- Business
- Fashion Network
UK retail sales are weak in June and worse expected for July, says CBI
Retailers reported that annual sales volumes fell 'at a sharp pace in June', the latest CBI Distributive Trades Survey has shown. It meant the ninth month in a row of declining volumes and there will probably be a 10th as retailers expect sales to fall again in July. The CBI survey doesn't give actual sales figures but provides a weighted balance of the percentage of retailers saying sales fell or rose to one degree or another. So this time, the weight balance was -46% (that is, 46% of retailers saying sales fell) compared to -27% in May. And 49% expect sales 'to decline rapidly again next month'. Sales volumes for the time of year were judged to be 'poor' in June, to a greater extent than in May (-37% for June from -19% in May). Retailers expect July's sales to fall short of seasonal norms to a broadly similar degree (-38%). Online retail sales volumes rose slightly in the year to June (+6% from +37% in May) and are expected to grow again next month (+8%). Martin Sartorius, Principal Economist at the CBI, said: 'Retail sales volumes fell rapidly in the year to June, extending the recent downturn into its ninth consecutive month. Many firms report[ed] that consumer caution continues to hold back sales. These data suggest that underlying activity remains subdued in the distribution sector.'
Fashion Network
26-06-2025
- Business
- Fashion Network
UK retail sales are weak in June and worse expected for July, says CBI
Retailers reported that annual sales volumes fell 'at a sharp pace in June', the latest CBI Distributive Trades Survey has shown. It meant the ninth month in a row of declining volumes and there will probably be a 10th as retailers expect sales to fall again in July. The CBI survey doesn't give actual sales figures but provides a weighted balance of the percentage of retailers saying sales fell or rose to one degree or another. So this time, the weight balance was -46% (that is, 46% of retailers saying sales fell) compared to -27% in May. And 49% expect sales 'to decline rapidly again next month'. Sales volumes for the time of year were judged to be 'poor' in June, to a greater extent than in May (-37% for June from -19% in May). Retailers expect July's sales to fall short of seasonal norms to a broadly similar degree (-38%). Online retail sales volumes rose slightly in the year to June (+6% from +37% in May) and are expected to grow again next month (+8%). Martin Sartorius, Principal Economist at the CBI, said: 'Retail sales volumes fell rapidly in the year to June, extending the recent downturn into its ninth consecutive month. Many firms report[ed] that consumer caution continues to hold back sales. These data suggest that underlying activity remains subdued in the distribution sector.'
Telegraph
29-04-2025
- Business
- Telegraph
Food prices jump after minimum wage increase
Food inflation has jumped to an 11-month high after an increase to the minimum wage prompted shops to raise prices. Essentials including bread, meat and fish have gone up in price this month, according to the British Retail Consortium (BRC), which released research showing food inflation rose to 2.6pc in April, compared with 2.4pc in March. Helen Dickinson, chief executive of the BRC, said: 'This comes in the same month retailers face a mountain of new employment costs in the form of higher employer National Insurance Contributions (NIC) and increased National Living Wage.' Fresh food inflation rose from 1.4pc in March to 1.8pc in April, according to figures compiled by the BRC and NielsenIQ. Ms Dickinson said: 'Food inflation rose to its highest in 11 months, and non-food deflation eased significantly.' The increase follows months of warnings about higher prices caused by increases in employment costs. In last autumn's Budget Rachel Reeves unveiled a 6.7pc increase in the National Living Wage to £12.21 an hour as well as an increase to NICs for businesses. The Chancellor also lowered the threshold at which companies have to pay NICs. The changes came into force earlier this month. At the same time, retailers are facing new pressures from a looming workers' rights overhaul, which is expected to make it difficult for them to hire more staff at peak periods and to bring people on for part-time roles. In a separate study on Tuesday, the BRC said that more than half of all retail HR directors expected to have to cut staff numbers in response to Labour's Employment Rights Bill. Ms Dickinson said: 'Almost 250,000 jobs have been lost in retail over the last five years and many major retailers have already announced further job cuts on the back of increased costs of employment, which kicked in in April.' The BRC said proposals to force companies to give employees guaranteed hours risked 'making it even harder to keep and create jobs and reduce the flexibility that defines many existing retail roles'. The Employment Rights Bill will be debated in the House of Lords on Tuesday. The warning comes as retailers are bracing for a deeper downturn in sales caused by Donald Trump's tariff onslaught. Retail sales have fallen for seven months in a row, according to the CBI Distributive Trades Survey, albeit at a lower pace in the year to April than the previous month. However, bosses expect a sharper downturn in May after wholesale volumes declined at one of the fastest rates in the past four years. 'Firms remain pessimistic' Martin Sartorius, principal economist at the CBI, said: 'Annual retail sales volumes fell more slowly in April, but firms remain pessimistic about the outlook due to the impact of Budget measures, persistently weak consumer sentiment, and global economic uncertainty.' Retailers said sales in April had been 'poor', the survey showed, with many also expected to cut back on orders at a quicker pace in May amid projections of weaker demand. Motor trade sales volumes also contracted at an accelerated rate in the year to April. Mr Sartorius added: 'With no sales recovery on the horizon, firms across the distribution sector want to see the Government use every lever available to boost business and household confidence during these challenging times.'
