The volume of retail sales fell again in the year to April, the most significant year-on-year fall since July 1992, according to the CBI's monthly Distributive Trades Survey.
Nearly half of retailers, 46 per cent, said their sales volumes were down in April, compared with 32 per cent which said sales were up.
This represents a balance of minus 14 per cent, which compares with a figure of minus nine per cent in the March survey. This is despite retailers' expectations in March that sales would stabilise.
Sales volumes were also considered to be poor for the time of year - by a margin of 36 per cent of companies. In response to the fall in sales, 37 per cent of retailers cut their orders to suppliers, compared with 30 per cent who increased their orders - a balance of minus 7 per cent. Stock levels continued to rise in relation to expected demand.
While there was poor trading in most sectors however the grocery sector was one of the few areas to show some sales growth.
There was a somewhat more positive outlook for wholesalers, with sales volumes stabilising over the year to April - contrasting with last month's very weak results. However their sales remained below the average for the time of year.
CBI Chief Economic Advisor, Ian McCafferty, said: "Tough trading conditions are continuing for most retailers, despite expectations last month that the position would stabilise.
“This ongoing decline in sales is likely to reflect the recent fall in real disposable incomes, higher fuel and utility bills, reduced activity in the housing market and higher mortgage rates than a year ago.
"These results add further weight to the argument against a premature rise in interest rates."
