UK Retail Sales Decline Eases in October but Shops Still Report Weak Demand, CBI Says

British retailers reported a much smaller year-on-year decline in sales during October, according to a Confederation of British Industry survey released on Monday, October 26, offering a measure of relief after a particularly weak September.

The survey's balance of retailers reporting changes in annual sales improved to minus 10, compared with minus 55 in September. A negative balance means more respondents reported falling than rising sales; it does not mean total retail sales fell by 10%. The latest reading was the strongest since April 2025, although it still indicated a contraction among surveyed businesses.

The CBI said retail sales volumes were falling at their slowest annual pace in more than a year. Its lead economist Martin Sartorius cautioned that the outlook remained fragile, citing cautious household spending and higher fuel costs. The improvement therefore does not establish that retail demand has returned to sustained growth.

The survey also indicated some easing in the pressure on orders placed with suppliers, with that balance improving to minus 36 from September's record-low minus 62. Those figures reflect respondents' assessments rather than the cash value of orders.

The survey was based on responses from 68 retail chains gathered between September 28 and October 14. It offers a timely picture of business conditions, but it is not the same measure as official government retail-sales statistics, which use a different methodology and reporting schedule.

The findings arrive before Wednesday's UK budget. Retail businesses have been pressing the government to address employment and property costs, while policymakers must weigh those requests against the wider fiscal position. The latest survey suggests conditions have become less negative, but not that the sector's underlying difficulties have ended.