Retail sales melt away hitting jobs and investment - as survey reveals it's too hot to shop if temperatures top 25C

See more This is Money on Google - save us as a Preferred Source Updated: 02:58 EDT, 27 August 2026 Shoppers have been shunning Britain’s sweltering high streets according to new industry figures to show evidence of weak consumer demand.Retail volumes fell ‘at a steep pace’ in the year to August, monthly data from the Confederation of British Industry (CBI) showed.It came as a separate survey from Barclays suggested it has been too hot to shop for much of the summer, with consumers unwilling to go out and spend once the temperature tops 25C.The findings suggest that the heatwave has piled even more pressure on the high street, at a time when it is already being crushed with higher employer national insurance bills and minimum wages as well as Labour’s botched business rates reform.The CBI said a balance of retail sales volumes, subtracting firms who saw sales fall from those who saw growth – fell to minus 48 per cent, down from minus 26 per cent in July. Retailers have suffered in the heatwave as shoppers deem it too hot to shop Sentiment about the wider business environment also took a tumble, declining to minus 29 per cent in August from -15 per cent the last time it was recorded in May.The darkening mood means retailers are continuing to cut investment and jobs.CBI lead economist Martin Sartorius said: ‘Retail firms grew more downbeat in August as they grappled with sharply falling sales volumes.’Sartorius said as MPs return to Parliament this autumn the government must consider the steps needed to restore confidence in the sector.He added: ‘Meaningful business rates reform is long overdue, with firms desperate for a fairer system that rewards – rather than penalises – investment and growth.‘The Government should also look to cut employer NICs to support hiring and ensure the sector can continue to provide job opportunities, particularly for young people.’Apart from facing steeply rising costs, retailers may be on the sharp end of falling consumer demand as the cost of living rises.Yesterday, the energy regulator Ofgem revealed tariffs are on course to rise to a three-year representing a typical £60, or 4 per cent, added to annual bills, taking them to £1,723, as the Iran war pushes up the price of gas.Experts at consultancy Cornwall Insight, a consultancy, expect an even steeper rise of 9pc to £1,872 in January, adding to pressure on households this winter.At the same time, unemployment looks set to rise, with forecasts predicting it to climb past 5pc this year. The prospect of rising joblessness is weighing on consumer confidence according to a recent survey by S&P Global.And the extended heatwave, with temperatures often reaching 30C over recent weeks, may also have proved unhelpful.A survey from Barclays showed that on average UK adults believe 25.1C would be the limit representing when it is too hot to go shopping. The weather has benefited some retailers however, with garden centre and cool summer clothing benefiting.Meanwhile, firms are prioritising investment in keeping cool, including air conditioning and ventilation, the report found.Unsurprisingly perhaps, Barclays also revealed that air conditioning suppliers are in the money, with cash inflows up 4.3 per cent compared to the same month last year.Official figures have painted a mixed picture of the summer so far for the high street.Retail sales rose 0.7 per cent in June, boosted by demand for cool clothing and barbecues as well as air conditions but fell 0.5 per cent in July as shoppers had already bought what they needed to survive the heat, according to the Office for National Statistics.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you