Retail sales hit by 'fragile' consumer confidence - CBI
By Abigail Townsend
Date: Monday 27 Apr 2026
LONDON (ShareCast) - (Sharecast News) - The British high street struggled in April, a long-running survey showed on Monday, rocked by deteriorating consumer confidence.
According to the latest CBI distributive trades survey, the sharp decline in sales and volumes seen in March - the worst since the start of the pandemic - continued into April.
Retail sales for the time of year were judged to be poor, with the balance falling to -32 from -23 in March. Sales volumes were also sharply lower with a balance of -68, a 16-point decline on March.
Expectations for the coming month also weakened, with May sales forecast to fall short of seasonal norms, with a balance of -43 and a sales volume balance of -60.
A weighted balance is the difference between the percentage of firms reporting an increase and those reporting a decrease.
Martin Sartoruis, lead economist at the Confederation of British Industry, said: "Retail conditions deteriorated in April, with sales momentum weakening noticeably against a backdrop of fragile consumer confidence.
"With the economic impact of the Iran conflict becoming clearer, firms will be looking to the government to recognise that easing cost of living pressures depends on tackling the cost of doing business."
The war in Iran, which started at the end of February, is weighing heavily on consumer sentiment worldwide. The conflict has sent global energy prices soaring, reigniting inflation fears and depressing hopes for lower interest rates. The Bank of England had been widely expected to cut Bank Rate this year prior to the outbreak of war, but swap markets are now pricing in rises.
The CBI survey also showed that online retail sales volumes had dropped sharply in April, falling at the fastest rate since January 2024 as the balance tumbled to -51 from -11 in March. Wholesale sales volumes, meanwhile, fell at a similar pace to that seen in March, shedding just one point at -32, although the pace of decline was expected to quicken next month.
Sartoruis said wholesalers had reported "headwinds from high costs and muted demand".
The survey was carried out between 26 March and 14 April. A total of 155 companies responded, of which 61 were retailers, 84 were wholesalers and 10 were motor traders.
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