U.K. Retail Sales Shrink at Fastest Pace Since Financial Crisis

(Bloomberg) -- U.K. retail sales fell at their fastest pace since the financial crisis in the year to June, as relatively poor weather kept shoppers away from stores, according to the Confederation of British Industry.

The volume of goods sold slumped by the most since March 2009, with almost one-in-six stores saying they sold less than the same time a year ago. Motor traders reported the fastest sales shrinkage in 7 1/2 years, although non-store sales, which include online purchases, bucked the trend to remain broadly flat.

While the findings were made worse by particularly strong sales during 2018’s heatwave, they nonetheless underscore the woes afflicting the British high street. Dixons Carphone Plc plunged to a record low last week after warning of significant losses in its mobile business, and hotel operator Whitbread Plc and leather-goods maker Mulberry Group Plc reported lower sales as the uncertainty around Brexit erodes business prospects.

The CBI survey of 88 firms between May 18 and June 14 also found the majority expect a further contraction next month.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, David Goodman, Brian Swint

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