Shop Price Inflation Eases As Promotions Rise

The British Retail Consortium and Nielsen have reported the latest Shop Price Inflation Index (SPI) for April.

The SPI measures changes in the price of 500 of the most commonly bought items. The SPI demonstrates the extent to which retailers contribute to inflation through the pricing of commonly bought goods. The SPI is administered by Nielsen, who collate the data on behalf of the BRC. The BRC provides analysis and wider commentary on retail-specific and economy-wide inflation.

Top Line Figures

ALL ITEMS: 0.4% (% change year-on-year)

NON-FOOD: -0.6% (% change year-on-year)

FOOD: 2.2% (% change year-on-year)

FRESH FOOD: 1.5% (% change year-on-year)

AMBIENT FOOD: 3.2% (% change year-on-year)

Helen Dickinson OBE, Chief Executive, British Retail Consortium: 

“Consumers will be pleased to see a slowdown in the Shop Price growth for both food and other goods. This has been driven, in part, by the significant number of promotions that have taken place in April. There were more than double the number of product lines on discount this month compared to the previous, as retailers hope to recover ground after March’s disappointing sales figures.

 “Intense competition may be benefiting consumers, but is cutting into the already slim margins of retailers. In order to be successful, retailers must invest in both their physical and digital offerings to ensure they can provide the customer experience consumers want. However, investment comes at a cost and unless the Government acts to reform the broken Business Rates system we may find more store closures and job losses on the horizon.“   

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

"The slowdown in shop price inflation this month is welcome news for shoppers who are now facing rising households bills across energy, travel and entertainment. Supermarkets continue to battle for shopper spend by offering attractive price cuts as seasonal fresh foods become available and non-food retailers, coping with weak demand, are keeping price points competitive. However, many households are still cautious about spending, so we anticipate promotions continuing over the summer months to help the momentum in retail sales which was kick-started by the late Easter and some warm weather.” 

Source : Insight DIY Team and BRC

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