26 May 2024, 03:48
By Furniture News May 05, 2016

Retail price deflation accelerates

The latest BRC-Nielsen Shop Price Index recorded overall shop price deflation of 1.7% in April, unchanged from the decline seen in March, and in line with the 12-month average.

Non-food deflation accelerated to 2.9% in April from the 2.6% fall in March. This is deeper the 12-month average of -2.7%

Helen Dickinson OBE, chief executive of the British Retail Consortium (BRC), says: “This month marks an important anniversary for retailers and shoppers alike. We’ve seen three years of falling shop prices, with prices falling by 1.7% in April compared to a year earlier. The 36 consecutive months of price falls is being driven by intense competition across the industry. It has knock-on implications for margins and profitability given the combination of continued investment in digital and rising cost pressures, compounded by recent policy announcements.

"Ensuring they do not pass on these cost increases, alongside the intensity of competition in the market, are the principal reasons why retailers continue to respond to their customers’ demands for value. As this month’s figures show, this has helped shoppers and kept inflation (and therefore interest rates) low to betterment of the UK economy.

“Non-food prices marked the 37th month of deflation, with prices falling 2.9% during the month. Excellent bargains were to be found in clothing and footwear, electricals and furniture and floorcovering. Clothing and footwear saw a significant fall of 7.1%, highlighting the heavy discounting in the run up to the summer season.

“Hopefully this anniversary of falling prices will be a strong remedy to consumer confidence which has weakened significantly since the beginning of the year.”

© 2013 - 2024 Gearing Media Group Ltd. All Rights Reserved.