Retail sales slump deepens in June 2026 - CBI Distributive Trades Survey
25 June 2026
Retail sales volumes were judged to be below seasonal norms in June, to the greatest extent in over two years, according to the latest CBI Distributive Trades Survey. Furthermore, retail sales volumes fell at a sharper rate in the year to June.
Looking ahead to July, retailers anticipate that sales volumes will continue to disappoint for the time of year, while year-on-year sales are set to decline at a slower – albeit still fast – pace.
Key findings included:
Retail sales for the time of year were judged to be “poor” in June, to the greatest degree since January 2024 (weighted balance of -40% from -35% in May). July’s sales are set to fall short of seasonal norms to a slightly lesser degree (-35%).
Retail sales volumes fell at a sharper rate in the year to June (-54% from -46% in May). Sales are expected to decline at a slower – albeit still rapid – pace next month (-45%).
Online retail sales volumes were flat in the year to June (0% from +11% in May). Retailers expect internet sales to grow at a strong pace next month (+37%).
Wholesale sales volumes fell at a slower rate in the year to June (-20% from -26% in May), but the downturn is set to accelerate next month (-43%).
Total distribution sales volumes declined in the year to June at a similarly firm pace to last month (-33% from -35% in May). Sales are set to contract at a faster rate next month (-41%).
Martin Sartorius, Lead Economist, CBI, said:
“Retailers reported a gloomy start to the summer, with sales disappointing relative to seasonal norms to the greatest extent in over two years amid depressed consumer sentiment and rising cost pressures. A sharp fall in year-on-year retail sales was mirrored across the broader distribution sector, with wholesalers and motor traders seeing firm sales declines.
“Businesses need clarity and stability at a time when confidence remains fragile. As government transitions to a new Prime Minister, the focus must remain on creating the conditions for growth by tackling the cost of doing business. For retailers and wholesalers, this includes delivering meaningful business rates reform, ensuring the Employment Rights Act avoids diminishing labour market flexibility, and taking further steps to address uncompetitive energy costs."
In addition, data from the survey showed:
Retail orders placed upon suppliers declined at a slower pace in the year to June (-26% from -39% in May) but are set to be cut back at a slightly quicker rate in July (-32%).
Retail stock volumes relative to expected sales softened slightly in June, now broadly in with the long-run average (+19% from +24% in May; long-run average of +17%). Stock positions are set to hold steady next month (+16%).
Motor trades sales volumes contracted at a slower pace in the year to June (-30% from -46% in May), with the sales decline set to ease further in July (-24%).