Retail sales in the UK have fallen for the twelfth consecutive month, underscoring the sustained struggle for the sector as weak consumer demand persists. The decline, tracked by the CBI Distributive Trades Survey for September, marks a full year of contraction in annual sales volumes.

Retailers anticipate the difficult conditions will continue, projecting that the decline in sales will accelerate slightly in October.

Key Findings from the Survey
Sales Volumes Remain Low: Retail sales volumes fell sharply in September, a pace similar to August. Looking ahead, the expected pace of decline for October is even faster.

Seasonal Disappointment: Sales were judged "poor" for the time of year in September. Crucially, retailers expect sales in October to be much more disappointing when measured against typical seasonal patterns.

Online Slowdown: Online retail sales volumes also saw a strong decline in September, following a modest rise in August, though the rate of decline is expected to ease slightly in October.

Wider Distribution Hit: The challenging climate is affecting the broader distribution industry. Wholesale sales and the motor trades both experienced quicker declines in September. For motor traders in particular, the contraction accelerated sharply.

Industry Call for Government Action

Martin Sartorius, Principal Economist at the CBI (Confederation of British Industry), highlighted the difficult environment. "September marked the twelfth straight month of falling retail sales, underlining the tough conditions facing the sector," he said. "Weak demand continues to weigh on sales, while US tariffs are adding pressure for some retailers."

He noted that the entire distribution sector, including wholesalers and motor traders, is feeling the impact of "lacklustre economic conditions".

"As we approach the Autumn Budget, retailers and other distribution firms will want the Chancellor to deliver certainty and restore confidence to businesses and consumers alike," Sartorius added. He pointed out that previous increases to employer National Insurance Contributions (NICs) and the National Living Wage, coupled with a high overall business tax burden, are severely impacting the sector.

Sartorius urged the government to "prevent burdening business further" and ensure that new legislation, such as the Employment Rights Bill, does not have "unintended consequences" that would negatively affect investment and growth.

The View from the Store

Further data from the survey reveals retailers are continuing to cut back on orders from their suppliers at a fast rate. Despite the sustained drop in sales, stock volumes relative to anticipated sales remain above their long-run average, suggesting that some retailers are holding more inventory than they would typically prefer in a healthier trading environment. This can sometimes lead to future price cuts to clear stock.