Shop prices fall at fastest rate since 2016 as retailers push promotions

Shop prices in the UK fell in May at the fastest rate of decline since 2006 as non-food retailers push promotions to make up for lost revenue in recent months, new data reveals.

Shop prices dropped by 2.4 percent last month compared to a 1.7 percent decrease in April, according to data from the British Retail Consortium. That’s below the 12- and 6-month average price decreases of 0.7 percent and 1 percent, respectively.

Non-Food prices fell sharply by 4.6 percent in May compared to a drop of 3.7 percent in April, below the 12-and 6-month average price declines of 1.9 percent and 2.4 percent, respectively.

Clothing and furniture saw a particular drop as retailers attempted to mitigate lost revenues caused by Covid-19 through launching heavy promotions.

“Even as non-essential shops begin to reopen from 15 June, consumer demand is expected to remain weak and many retailers will have to fight to survive, especially with the added costs of social distancing measures,” said BRC CEO Helen Dickinson in a statement.

“Retailers face an uphill battle to continue to provide their customers with high quality and great value products despite mounting costs. Government support remains essential, both to rebuild consumer confidence and to support the thousands of firms and millions of jobs that rely on it.”

Photo credit: FashionUnited

 

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