UK Retail Sales Fall Sharply: CBI

EthereumCraftsman · 2026-02-24T12:40:18+00:00

In February 2026, CBI retail sales balance dropped to -43, highlighting weakened sales since mid-2023. Retailers face low demand, slow investment, and falling employment, despite rising online sales. The sector continues to struggle amid soft demand and higher costs.

EthereumCraftsman

2026-02-24 12:40:18

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The CBI retail sales balance fell to -43 in February 2026 from -17 in January and well below market expectations of -16. Retail sales volumes have been weakening since mid-2023, and February saw a sharp decline, though the pace of contraction is expected to slow next month. Retailers reported sales for the season as “poor” and anticipate continued underperformance, reflecting persistently weak demand. Sentiment remains near a 17-year low, prompting firms to scale back investment and reduce headcount, with employment falling at the fastest rate since May 2023. Despite this, retail selling prices grew in line with long-term averages, while online retail sales surged at the fastest rate since April 2021. Orders to suppliers and stock levels eased, suggesting cautious inventory management. Overall, the sector faces ongoing pressure from soft demand and rising costs, even as online channels partially offset declines.

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