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The CBI retail sales balance dropped sharply to -54 in June 2026 from -46 in May, falling well short of market expectations of -41. Retailers described a bleak start to the summer, as weak consumer confidence and rising cost pressures pushed sales far below typical seasonal levels.
The annual decline in sales extended across the wider distribution sector, with wholesale volumes contracting by 20%. Online sales were unchanged at 0% following an 11% increase previously, but internet sales are forecast to rebound strongly next month, with a projected rise of 37%.
Despite this anticipated online recovery, overall retail, wholesale, and total distribution activity is expected to remain in contraction through July. CBI Lead Economist Martin Sartorius stressed that businesses need greater policy clarity and structural reforms—especially on business rates and energy costs—to support economic growth as the government prepares to install a new Prime Minister.
