Festive Discounting Underway

The BRC has published its latest shop price data, covering the 2nd to 6th November 2020.

• Shop Prices fell by 1.8% in November compared to a 1.2% decline in October. This is below the 12- and 6-month average price decreases of 1.3% and 1.5%, respectively.
• Non-Food prices fell by 3.7% in November compared to a decline of 2.7% in October. This is below the 12- and 6-month average price declines of 2.8% and 3.2%, respectively.
• Food inflation inched to 1.3% in November up from 1.2% in October. This is below the 12-month average price increase of 1.4%, but in line with the 6-month average price increase of 1.3%.
• Fresh Food inflation accelerated to 0.5% in November up from 0.4% in October. This in line with the 12-month average price increase of 0.5%, but above the 6-month average price increase of 0.4%.
• Ambient Food inflation accelerated to 2.5% in November up from 2.3% in October. This is below the 12- and 6-month average price increases of 2.6% and 2.6%, respectively.

Helen Dickinson OBE, Chief Executive, British Retail Consortium:
“As we approach Christmas, consumers will be glad to see another month of falling prices. This was mainly driven by non-food products, where prices have fallen at a much quicker rate than the previous month. Where demand was weak for some products, discounting has followed, with many retailers trying to encourage more consumer spending, particularly those selling fashion and DIY goods. Meanwhile, food inflation remains low, but we anticipate upward pressures on food prices once the UK-EU transition period ends.

“It has been an extremely challenging year with two pro-longed periods of forced closures for parts of the industry. Those shuttered during lockdown have lost billions in sales and many are now in a precarious financial position. The Government must not subject these businesses to a return to full business rates liability from April 2021, and they must urgently consider extending the moratorium on debt enforcement beyond January. Without such interventions, we will see countless more store closures and job losses, deepening the crisis on our high streets.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen:
“Shop price inflation remains low in food with supermarkets competing for the wallet of the Christmas shopper when sales of seasonal food and drink increased at the end of November. However for non food retailers, the industry faced the challenges of further lockdowns and predicting the levels of demand for online, so it's not a surprise to see price deflation accelerate, considering the uncertainty around consumer sentiment.”

Source : BRC

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