UK July CBI total distribution volume of sales -39

UK July CBI total distribution volume of sales -39

UK retail sales continued to struggle in July, with a 39% decline in total distribution volume, according to the latest Confederation of British Industry (CBI) Distributive Trades Survey. This marks the tenth consecutive month of sales downturn, underscoring the persistently challenging trading conditions facing the sector [3].

The CBI's monthly gauge of how retail sales compared with a year earlier stood at -34, an improvement from June's -46, but still indicating significant weakness in demand. Retailers expect sales to fall at a similar pace next month, with a forecast of -31 [3].

Economic uncertainty and elevated price pressures, driven by rising labor costs, continue to weigh on household demand. This has contributed to sales volumes falling since October 2024. These trends of weak demand and uncertainty were mirrored across the wider distribution sector, with wholesale and motor trades also seeing declining sales [3].

While online retail sales volumes grew marginally in the year to July, marking the third month in a row of expansion, the overall picture remains bleak. Total distribution sales volumes, including retail, wholesale, and motor trades, fell at a fast rate in the year to July (-39%) and are expected to contract at a slightly slower pace in August (-34%) [3].

Martin Sartorius, Principal Economist at the CBI, noted that the sales downturn has been exacerbated by the economic uncertainty and rising costs. He called on the government to collaborate with businesses to deliver an Autumn Budget that acknowledges the burden firms are facing and sets clear policy delivery targets [3].

References:
[1] Reuters. (2025, July 28). UK retail downturn stretches into 10th month, CBI survey shows. Retrieved from https://www.reuters.com/business/retail-consumer/uk-retail-downturn-stretches-into-10th-month-cbi-says-2025-07-28/
[2] AInvest. (2025, July 25). Heineken EU trade deal: Navigating tariff risks and strategic manufacturing shifts. Retrieved from https://www.ainvest.com/news/heineken-eu-trade-deal-navigating-tariff-risks-strategic-manufacturing-shifts-2507/
[3] CBI. (2025, July). Retail sales struggle amid subdued demand and economic uncertainty, CBI Distributive Trades Survey July 2025. Retrieved from https://www.cbi.org.uk/media-centre/articles/retail-sales-struggle-amid-subdued-demand-and-economic-uncertainty-cbi-distributive-trades-survey-july-2025/