Posted 9th May

Shop price growth slows in April, says BRC

By KBBDaily on 9th May 2019 - 08:00am
money matters, brc, british retail consortium, nielsen, shop, price, index, deflation, non-food, kbb, kbbdaily, retail

The latest British Retail Consortium – BRC – Nielsen Shop Price Index has reported a 0.4% deceleration in shop price inflation in April compared with the 0.9% recorded in March, while non-food product prices ventured back into inflationary territory.

The non-food sector saw prices decrease by 0.6%, above the 12-month average price decline of 0.8%. The BRC added that there was a “significant pick-up” in promotional activity, with the number of both food and non-food discounted products more than doubling.

According to the BRC, retailers are “trading depth for breadth, with more lines on promotion but shallower price cuts”, adding that the move is “testimony to shoppers’ reluctance to spend and to the intense competition within the industry”.

“Intense competition may be benefiting consumers, but is cutting into the already slim margins of retailers,” said BRC CEO Helen Dickinson. “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.”

Nielsen retailer and business insight head Mike Watkins added that “non-food retailers, coping with weak demand, are keeping price points competitive”. He said: “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.”

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