Retail sales are falling, according to the latest figures from the Confederation of British Industry, with lower consumer confidence and sales volumes dropping over the summer.

The research found that retail sales were found to be “poor” to a higher extent at -19% compared to -10% last month.

Retail sales decreased significantly in August, at -32% compared to -34% in July. However, the CBI estimated that the decline rate will be slower next month at -16%.

Martin Sartorius, CBI Principal Economist, said: “Retailers endured another tough month in August, with annual sales volumes falling for the eleventh consecutive month.”

“Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector. This downbeat outlook is reflected in firms’ plans to scale back investment and hiring,” he added.

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The Government’s increase in National Insurance fees and the rise in the minimum living wage have created additional pressure for retailers, who have urged the Chancellor to take action ahead of the next Autumn Budget.

Sartorius continued: “The Government’s fiscal decisions are continuing to bite, and retailers’ struggles send a clear signal: business cannot be asked to balance the books again at the Autumn Budget. Building business confidence through delivery must be the priority, starting with a rethink of the Employment Rights Bill, which risks piling on unnecessary costs and holding back jobs and investment.”

Additionally, retail employment declined at a relatively flat rate year-over-year, at -14% in August, with many supermarket retailers recently slashing jobs to offset rising costs.

Overall selling price saw the highest increase since November 2023, with a 65% rise compared to a 35% growth in May.