The business organisation also revealed that stocks have fallen further to a level that is considered to be just adequate, and that job cuts were heavier than in May's survey.
Answering the latest CBI Distributive Trades Survey, 34% of retailers said that their volume of sales in the year to August had risen, while 51% said they fell. The resulting rounded balance of -16% was similar to sales declines in the previous three months, and was better than expected (-23%). A similar fall in sales is predicted for September (-14%).
Quarterly questions revealed that employment conditions are tough within the retail sector, with a balance of 41% of firms reporting that they had reduced their headcount. This was noticeably more negative than in May (-29%) and a further decline in staff numbers is predicted in September (-36%).
But after an 18-month period of distinctly negative business sentiment, retailers are no longer feeling so pessimistic about the outlook for their general business situation. The balance of firms expecting a deterioration over the next three months is very modest (-2%) and the least negative since November 2007 (a balance of -1%).
Andy Clarke, chairman of the CBI Distributive Trades Panel, and chief operating officer of Asda, said: "These results round off a slow and disappointing summer for many in the high street, and the picture is not set to improve in September. Stock levels have been pared right back as retailers have adapted to weaker consumer demand. However, throughout the year retailers have become less and less negative about the business outlook, and that reflects increasing signs of stability in the wider economy."
