British retailers have reported a pronounced downturn in sales in the run-up to Christmas and a markedly weak outlook for the start of 2026, according to the latest survey by the Confederation of British Industry.

The CBI’s headline gauge of annual retail sales volumes deteriorated to a weighted balance of negative forty-four in December from negative thirty-two in November, signalling an accelerating decline compared with the same period last year and underscoring a difficult festive trading season.

Expectations for next month’s sales also plunged sharply, with the forward-looking balance falling to negative fifty-seven, the lowest reading since March two thousand twenty-one, during the COVID-19 pandemic’s profound disruption to consumer markets.

The survey, conducted between November twenty-four and December eleven and involving one hundred and sixty-one respondents including sixty retailers and eighty-five wholesalers, echoes official data showing a small monthly drop in retail sales in November, adding to concerns about subdued consumer demand and economic uncertainty.

Retailers cited weak consumer confidence and cautious spending patterns as key factors behind disappointing seasonal performance, while warning that the downturn could persist into early next year.

The findings come as the broader UK economy grapples with mixed signals, with markets performing strongly yet real-economy indicators such as retail trade revealing softness in household consumption.

The sharp deterioration in both actual and expected retail sales highlights mounting pressure on government policymakers and businesses alike to address cost burdens and revive consumer sentiment as the retail sector heads into a crucial period of trading and economic transition.