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GB: CBI Distributive Trades
| Actual | Previous | |
| Sales Balance | -55% | -48% |
Highlights
UK retail conditions deteriorated further in September 2026, signalling deepening demand weakness. The annual sales balance fell to minus 55 percent from minus 48 percent in August, while sales relative to seasonal norms weakened to minus 40 percent. These survey balances measure the predominance of reported declines, rather than percentage reductions in actual sales.
Online retail offered little protection as its sales balance dropped to minus 68 percent, the weakest since October 2023. This suggests that subdued spending extends across sales channels. More concerningly, supplier orders recorded a balance of minus 62 percent, the lowest since the survey began in 1983. Such pronounced reductions suggest defensive purchasing decisions and could transmit retail weakness upstream to wholesalers and manufacturers.
The deterioration also encompassed wholesale and motor trades, pushing the total distribution sales balance to minus 36 percent. Although retailers expect a slower annual sales decline in October, persistently weak online sales and order expectations suggest limited prospects for an immediate recovery.
The findings strengthen the case for measures supporting business confidence and reducing operating costs. However, their effectiveness will also depend on whether consumer confidence and spending recover.