FX.co ★ UK Retail Sales Fall Sharply: CBI

The CBI retail sales balance dropped to -43 in February 2026 from -17 in January, far below market expectations of -16. Retail sales volumes have been weakening since mid-2023, and February marked a pronounced deterioration, although the pace of contraction is expected to moderate next month. Retailers described seasonal sales as “poor” and foresee continued underperformance, underscoring persistently subdued demand. Business sentiment remains close to a 17-year low, leading firms to cut back on investment and reduce staffing, with employment declining at the fastest rate since May 2023. Even so, retail selling prices rose broadly in line with their long-run averages, while online retail sales grew at their fastest pace since April 2021. Orders to suppliers and inventory levels both eased, indicating more cautious stock management. Overall, the sector remains under strain from weak demand and rising costs, though strength in online channels is providing a partial offset to declines elsewhere.