The CBI’s headline retail sales balance dropped to -48 in August 2026 from -26 in July, sharply undershooting market expectations of -24. Retailers reported notably weaker sales volumes, and trading remained subdued across the wider distribution sector. This deterioration weighed on both hiring and investment plans.
Despite the weaker backdrop, retailers anticipate some improvement in September: the sales expectations balance rose to -22, its highest level since March. However, sales relative to the time of year also deteriorated, slipping to -26 from -18 in July.
The CBI’s quarterly business situation balance fell further to -29 from -15 in May, underlining the persistent pressures facing the sector. Even so, investment intentions strengthened markedly, improving to -16 from -52 in May—their most positive reading since February 2024. Employment trends also showed signs of resilience, with retailers reducing headcount at the slowest rate since November 2025.
