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UK retailers report sales drop, biggest cutback in orders on record: CBI - Finance news and analysis from Global Banking & Finance Review
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UK retailers report sales drop, biggest cutback in orders on record: CBI

Published by Global Banking & Finance Review

Posted on September 24, 2026

2 min read

· Last updated: September 24, 2026

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UK Retailers Mark Largest Sales and Order Plunge Since 1983, CBI Reports

CBI Survey Reveals Sharp Decline in Retail Sales and Orders

Record-Breaking Drop in Sales and Orders

LONDON, Sept 24 (Reuters) - British retailers this month reported the biggest drop in sales since April and they cut orders with their suppliers by the most since records began in 1983, a Confederation of British Industry survey showed on Thursday.

The CBI's headline distributive trades balance, which measures activity compared with a year earlier, fell to -55 to -48 in August.

Expert Insights on Retail Downturn

"Retailers reported a steep fall in annual sales volumes in September, with some firms attributing the deterioration to poor consumer sentiment," said Martin Sartorius, lead economist at the CBI.

"The persistent sales downturn appears to have prompted retailers to cut back on order volumes at a survey-record pace."

Policy Hopes for Retail Sector

The CBI said it hoped new Prime Minister Andy Burnham's pledge to boost growth "in every postcode" would include lower property taxes for high-street retailers

Additional Sector Highlights

Key Findings from the CBI Survey

  • Wholesalers and the motor trade also reported deteriorating sales
  • Retailers' expected sales volumes for August fell to -37 from -22
  • CBI retail data has been persistently more downbeat than that from the British Retail Consortium and the Office for National Statistics
  • ONS retail sales data last week showed 2.7% annual sales volume growth excluding fuel in the year to June
  • The CBI survey was based on responses from 46 retail chains and 71 wholesalers between August 27 and September 14
Survey Methodology

The CBI survey was based on responses from 46 retail chains and 71 wholesalers between August 27 and September 14.

Reporting Credits

(Reporting by Andy Bruce; editing by suban Abdulla)

Key Takeaways

  • The CBI’s distributive trades balance fell from –48 in August to a record low for orders since 1983
  • Weak consumer sentiment drove the biggest annual sales volume drop since April, prompting mass order reductions
  • Retailers are pinning hopes on PM Andy Burnham’s growth‑across‑every‑postcode agenda—especially business rates reform—to help revive high‑street trading

Frequently Asked Questions

What did the latest CBI survey reveal about UK retail sales?
The CBI survey reported the biggest drop in UK retail sales since April and the largest cutback in orders with suppliers since records began in 1983.
What factors contributed to the drop in UK retail sales?
Retailers attributed the fall in annual sales volumes to poor consumer sentiment and persistent sales downturn.
How did British retailers react to declining sales in the CBI survey?
British retailers reduced orders with suppliers at a record pace, indicating cautious inventory management amid weak sales.
How do CBI retail data compare with other sources like the ONS?
CBI retail data have been more downbeat compared to data from the British Retail Consortium and the Office for National Statistics.
When was the CBI survey conducted and on what sample?
The CBI survey was conducted between August 27 and September 14, involving 46 retail chains and 71 wholesalers.

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