The year started badly for retailers and the landscape is likely to get worse in February, according to the latest Confederation of British Industry (CBI) survey.
On its Distributive Trades Survey, 63% of retailers said sales were down compared with the first half of January 2008.
The three-month moving average of volumes on the survey, which looks to iron out peaks, stood at -49%, the CBI added.
A 52% balance of retailers expects sales to decline next month.
The CBI revealed every sector apart from footwear and leather saw a fall in sales in the first half of January.
Suppliers were hit in the opening half of the month, the CBI said, as 51% of retailers reported a drop in the number of orders placed on suppliers.
Chairman of the panel and Asda’s retail director Andy Clarke said: “As petrol costs and food inflation have come down and household energy bills are beginning to ease, consumers will have a bit more spending power, but as job losses increase retailers will face a difficult year.”
CBI chief economic advisor Ian McCafferty added: “Later this year we hope to see some benefit from recent interest rate cuts, falling inflation, and the government’s steps to kickstart lending.
“But retailers will still have to work hard to coax anxious consumers back into the shops.”
Official government figures out on Friday suggested that the UK is now officially in a recession.
Some grocery retailers, including Sainsbury’s and Morrisons, have bucked the sales trend with strong Christmas results.
