BRC: Shop Prices Drop As Spending Slows

The BRC has reported on September's SHop Prices for 02 - 06 September 2019.

• September Shop Prices fell by 0.6% compared to a 0.4% decrease in August. This is the highest rate of decline since May 2018.
  
  
• Non-Food prices fell by 1.7% in September compared to August’s decrease of 1.5%. It is the highest rate of decline since May 2018.
  
  
• Food inflation eased to 1.1% in September from 1.6% in August. It is the lowest inflation rate since April 2018.
  
  
• Fresh Food inflation rate halved in September to 0.7% compared to 1.4% in August. It is the lowest inflation rate since March 2018
  
  
• Ambient Food inflation slowed to 1.7% in September from 1.8% in August. It is the lowest inflation rate since June 2018. 

Helen Dickinson OBE, Chief Executive, British Retail Consortium:

“Shop prices fell by 0.6% on the previous year as low consumer demand and stiff competition continued to push down prices. Non-food prices fell to their lowest since May 2018 as the effects of the 2016 currency depreciation finished filtering through the economy. Food price inflation eased to a 17-month low reflecting both lower domestic prices for vegetables and lower global prices for meat.

“While consumers may welcome lower prices, falling consumer demand is squeezing retailers’ already tight margins. With business costs continuing to rise – including business rates, wage bills, and pension costs – the high street risks more big name closures. Reform of business rates remains the most effective way Government can support the retail industry – and they should grasp the opportunity with both hands.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen:

"With consumers feeling uncertain about spending, retailers continue to focus on limiting price increases coming through the supply chain. Prices have fallen in non foods helped by seasonal reductions and many food retailers have introduced price cuts to help regain momentum after a challenging summer. Competition for discretionary spend will intensify across all channels as we head towards the end of the year and we anticipate more promotional savings for shoppers and inspiring media campaigns that help to drive incremental sales."  

Source : Insight DIY Team and BRC

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