UK retail sales fall further in June - CBI

The Confederation of British Industry (CBI) reported on Tuesday its latest survey of 88 firms, of which 45 were retailers, showed retail sales volume balance fell sharply to -42 in June from -27 in May, marking the fastest contraction since March 2009.

Economist had forecast the reading to come in at -10.

The report also notes the indicator is expected to improve in July to -11.

According to the report, grocers were the largest contributors to the fall in sales volumes, with the hardware & DIY and footwear & leather sub-sectors also reporting declines. At the same time, internet sales across the retail sector stalled in the year to June, marking the weakest growth since the question was first introduced to the survey (in 2009).

Alpesh Paleja, CBI Principal Economist noted that underlying conditions on the High Street remain challenging. “Retailers are having to continually compete for the attention of value-conscious shoppers, in the age of digital disruption”, she said. “The new Prime Minister must help support retailers by reducing the high cumulative burden of costs they face. This should start by urgently reviewing the dire business rates system, which is unfairly impacting UK high streets and deterring much needed investment.”