UK retail sales continue to decline for ninth month, with retailers bracing for further drop.

From Yahoo Finance: 2025-06-26 10:05:00

Retail sales volumes in the UK dropped sharply in June, marking the ninth consecutive month of decline, with an annual sales balance of –46% according to the CBI. Retailers expect a further drop in July to –49%, as caution among consumers persists.

The decline in retail trade extends across wholesale and motor sectors, with poor sales volumes for the time of year. Wholesale activity also contracted, though at a slower pace, with wholesalers anticipating further reductions next month. Motor trade volumes fell in June but are projected to decline less in July.

Online retail saw a 6% year-on-year increase in June, down from May, with forecasts for approximately 8% growth in July. Despite reduced demand, retailers are carrying excess inventory, with stock volumes relative to expected demand higher than average.

CBI principal economist Martin Sartorius noted that consumer caution is dampening retail and wholesale activity. Official statistics from the ONS show a 2.7% monthly drop in retail sales volumes in May, reinforcing the challenging market conditions.

Persistent inflation, cost-of-living pressures, and reduced discretionary spending continue to impact household budgets, affecting consumer demand in the distribution sector. Further policy interventions may be needed to stimulate consumer confidence and support retail resilience amidst ongoing challenges.



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