UK retail downturn eases in July - CBI

27th Jul 2026 11:47

(Sharecast News) - The downturn in the UK retail sector eased in the six months to July, according to the latest survey released by the Confederation of British Industry on Monday.

The CBI's headline distributive trades balance rose to -26 from -54 in June, although sales are expected to fall at a similar pace next month.

A balance is the weighted difference between the percentage of firms reporting an increase and those reporting a decrease.

Retail sales for the time of year were judged to be "poor" in July, albeit to a considerably lesser extent than in June, with a balance of -18, versus -40.

CBI lead economist Martin Sartorius said: "Retailers reported that the ongoing sales downturn lost steam in July, but a recovery still looks some way off as gloomy sentiment and elevated cost pressures weigh on activity. That said, conditions in the rest of the distribution sector were less downbeat, with wholesalers seeing stable volumes for the first time in over two years and motor trade sales rebounding.

"Distribution firms will welcome the Prime Minister's focus on supporting local high streets and will be looking for broader business rates reform to address one of the key constraints on investment and growth. To deliver inclusive growth in every postcode, the government must also take further action to tackle rising labour costs while protecting labour market flexibility, so that the sector can continue to provide young people with rewarding routes into work."

The survey was based on responses from 67 retailers and 105 wholesalers between 26 June and 14 July.