Retail sales fall at record pace in May as financial pressures mount

Retail sales remained deeply depressed in May as a result of a coronavirus lockdown that has prompted a collapse in consumer spending.

According to a monthly survey by the CBI retail sales have hovered around 12 year lows for the second month in a row as retailers battle for survival.

The distributive trades survey by the employers’ organisation shows a net balance of -50 per cent of retailers reporting rising sales in May, only a slight improvement from -55 in April.

The survey revealed that financial pressures are the number one worry for the sector with 80 per cent of retailers reporting cash-flow difficulties.

The CBI has called on the government to implement further measures to help the sector.

Rain Newton-Smith, CBI chief economist, said: "The retail sector is at the sharp end of a crisis, with many businesses up against it.

"The government’s support packages are making a real difference, with more shops reporting that jobs have been furloughed, rather than lost. The furlough system will need to adapt as more businesses open their doors in the months ahead.

"As we gradually reopen the economy, retailers may yet need more support from the government if demand falters."