Independent retail crisis deepens as nearly half see sales plummet compared to last year

Britain's high street crisis has deepened dramatically with nearly half of independent retailers reporting sales have crashed compared to last year, according to worrying new research that exposes the scale of the struggle facing local businesses.

The figures, released by Bira, show 46% of businesses suffered worse Q2 2025 trading compared to the same period in 2024, with stretched household budgets leaving customers unable to afford "extra luxuries."

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The latest Heartbeat survey, conducted over two weeks from July to August 2025, gathered responses from Bira Group members and the Association of Cycle Traders (ACT). The quarterly research measures trading performance throughout the year, providing crucial insights into the health of Britain's independent retail sector.

While 45% of respondents said Q2 was much or somewhat better than Q1 2025, this improvement came against the backdrop of Q1 traditionally including the January sales period, with Q2 typically representing quieter trading months. More concerning, only 13.8% reported Q2 2025 was better than Q2 2024, highlighting year-on-year challenges.

Retailers cited squeezed household finances as a primary concern, with one respondent noting: "Money appears to be tight for households, everyday costs leave households with very little to play with for extra luxuries." Another observed that "good weather was keeping people out of the high street."

The cycling sector presented a mixed picture, with some retailers benefiting from improved weather conditions. One cycle shop reported: "Cycle retail, the better weather and reduced discounting in the market place has really helped." However, others faced difficulties, with one noting: "Sales were very weak in April due to the stock market crash caused by Trump Tariff announcements. Sales in May and June were significantly better."

Industry-specific challenges persist, with retailers highlighting "lots of overstock throughout the industry still flowing through the system. Plus aggressive new brands direct from China and Taiwan infiltrating the market."

When asked about government priorities for the autumn statement, an overwhelming 47% of respondents identified business rates reform as the most critical issue requiring attention. Other priorities included minimising national minimum wage increases, addressing cyber crime, and increased government spending on policing.

One retailer warned: "The threat of additional tax rises and the outcome of the budget in the autumn may cause further anxiety by consumers and put pressure on sales in the crucial Christmas period."

The Heartbeat survey is conducted quarterly by Bira Group, measuring trading performance throughout the year among independent retail businesses. The Q2 2025 survey was conducted over two weeks from July to August 2025, gathering responses from Bira Group members including independent retailers and members of the Association of Cycle Traders.