High street sales fell sharply this month and at their fastest rate since December 2008, leaving sentiment “crumbling” among retailers.
A survey by the CBI employers’ group found that retail sales volumes and orders deteriorated in August as bricks and mortar shops continue to struggle.
While non-store retailers posted a rise in sales, internet growth was also depressed below its average, suggesting that consumer confidence is weakening rather than just shifting online.
The CBI, which speaks for Britain’s biggest businesses, said that grocery, clothing and DIY retailers suffered a drop in sales.
About 10 per cent of respondents reported that sales volumes were up on a year ago, compared with 58 per cent who said they were down.
Anna Leach, CBI deputy chief economist, said: