Finance
UK Retail Sales Tumble in March by Most Since 2020, Cbi Says
Published by Global Banking & Finance Review®
Posted on March 24, 2026
2 min readLast updated: March 24, 2026
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UK retail sales plunged sharply in March—the deepest decline since April 2020—as weak economic conditions and surging petrol costs weighed on household spending, according to the CBI’s survey. Expectations for April offer little relief.
UK Retail Sales Experience Largest Decline Since 2020 Amid Economic Pressures
Retail Sales Plunge and Contributing Economic Factors
Record Decline in Retail Sales
LONDON, March 24 (Reuters) - British retail sales have tumbled this month by the most since April 2020 when most non-food shops were closed at the start of the COVID-19 pandemic, a survey showed on Tuesday.
CBI Survey Results
The Confederation of British Industry's said its monthly gauge of retailers' annual change in sales volumes sank to -52 in March from an already weak -43 in February, and businesses expected only a marginal improvement to -49 in April.
Expert Commentary
"Retailers report that weak economic conditions continue to weigh on household spending, with subdued activity also evident across the broader distribution sector," CBI Lead Economist Martin Sartorius said.
Survey Details and External Influences
Survey Timing and Methodology
The survey of 50 retail chains took place between February 25 and March 13, mostly falling after the start of the U.S.-Israeli war on Iran.
Impact of Geopolitical Conflict and Inflation
The conflict has pushed up petrol prices in Britain and the Bank of England expects it will increase broader inflation later this year.
Government Response and Business Concerns
The survey did not directly attribute the fall in sales to the conflict. The CBI said it increased the necessity for the government to ease the cost impact to businesses from new employment rights and tax.
"The conflict in the Middle East - which risks fuelling price pressures and squeezing household budgets - underscores the need for the government to take further action to lower the cost of doing business for distribution firms," Sartorius said.
Reporting Credit
(Reporting by David Milliken)
Key Takeaways
- •The CBI’s retail sales gauge dropped from –43 in February to –52 in March, marking the steepest fall since the height of pandemic lockdowns in April 2020
- •Rising petrol prices—exacerbated by the U.S.–Israeli war on Iran—are expected to heighten inflation and further pressure consumer spending
- •CBI urges the government to mitigate rising business costs from new employment rights and taxes to support retailers and distribution firms
Frequently Asked Questions about UK retail sales tumble in March by most since 2020, CBI says
1How much did UK retail sales decline in March 2024?
UK retail sales declined by the most since April 2020, with the CBI sales volume gauge dropping to -52.
2What factors contributed to the fall in UK retail sales?
Weak economic conditions and increased petrol prices contributed to the decline in retail sales.
3Which organization released the UK retail sales survey?
The Confederation of British Industry (CBI) released the survey.
4Will UK retail sales improve in April 2024?
Businesses expect only a marginal improvement in April, with the gauge predicted to rise to -49.
5What does the CBI recommend to address the retail decline?
CBI recommends government action to lower the cost of doing business for distribution firms.
