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Sandra Halliday Published
June 26, 2025
Retail sales “faltered yet again” in June with volumes down for a second month, according to the latest CBI Distributive Trades Survey.
While the survey measures sales in a different way from any other bodies tracking the sector, as it’s the earliest of the monthly reports, it’s a key indicator of what’s happening right now.
The key survey findings for the month are that retail sales volumes continued to decline in the year to June with a ‘weighted balance’ of -9% from -10% in the year to May. But the figure is expected to be 0% in July.
The balance is the weighted difference between the percentage of retailers reporting an increase and those reporting a decrease. So it essentially means more retailers reported volumes falling for the month than said their sales volumes rose or stayed flat.
The survey also showed that orders placed with suppliers declined in the year to June, but at a slower pace than last month (-10% from -30% in May). Orders are expected to fall at a broadly similar pace next month (-9%).
That’s perhaps no surprise given that retailers also reported the firmest stock positions since May 2025 (+33% from +25% in May). Stock volumes look set to remain elevated relative to expected sales next month (+26%).
The CBI also said internet sales volumes rebounded in the year to June (+26% from -9% in May) and are expected to maintain a broadly similar pace of growth in July (+27%).
Overall, retail sales volumes were reported to be “average” for the time of year (+1% from -18% in May) and are expected to remain broadly in line with seasonal norms next month (-2%).
Martin Sartorius, CBI Principal Economist, said: “Another contraction in sales volumes attests to the difficult trading environment being faced by the retail sector. Households’ finances are still under pressure from high inflation, which means that demand conditions for retailers are likely to remain challenging in the coming months.
“Retailers continue to be disproportionately affected by the business rates system when compared to other sectors. There is a real opportunity – and a real need – to redesign the relationship between businesses, local authorities, and the communities they both serve.”