UK retail sales drop for eleventh month in a row in August - CBI

27th Aug 2025 11:45

(Sharecast News) - UK retail sales fell for the eleventh month in a row in the year to August, according to a survey released on Wednesday by the Confederation of British Industry, with weak demand, increased labour costs, and low confidence continuing to take their toll.

The retail sales volume balance was -32%, a slightly improvement on July's -34%.

Looking ahead to September, retail sales are expected to decline at a slower rate than in August, with the balance of expected sales improving to -16 from -31.

Martin Sartorius, principal economist at the CBI, said: "Retailers endured another tough month in August, with annual sales volumes falling for the eleventh consecutive month. Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector. This downbeat outlook is reflected in firms' plans to scale back investment and hiring.

"The government's fiscal decisions are continuing to bite, and retailers' struggles send a clear signal: business cannot be asked to balance the books again at the Autumn Budget. Building business confidence through delivery must be the priority - starting with a rethink of the Employment Rights Bill, which risks piling on unnecessary costs and holding back jobs and investment."