New data from the CBI Distribution Transaction Survey show retail sales declined to -23% in October.
After 11% growth last month, new social distancing measures are at the expense of retail sales, marking the biggest decline in sales since June.
Grocery sales remained flat while retailers report declining sales. Furniture, DIY and recreational products are still strong as people spend more time at home.
Ben Jones, Principal Economist at CBI, said: “The decline in retail sales in October is a warning sign of a loss of further momentum in the economy as coronavirus cases recover and restrictions have been tightened in many parts of the country.
“It is not surprising that sales fell despite the lack of new direct restrictions on UK retail, as evidence earlier this year suggests that consumers will become more cautious as case numbers increase.
“With scaffolding still down by a third, many retailers are facing difficult preparations for the very important Christmas period. It is important for local governments to use their discretion to new Tier 2 grants to target support in a way that will help keep town and city centers open for business.”
Car sales have also declined this month, with CBI reporting: “After three months of sales increase, motor traders reported a decline in October (from -32%, +24%). Sales volume is expected to drop again next month (-16%).”
