Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

UK Shop Prices Fall At Fastest Pace Since At Least 2006: BRC

Prices in shops in Britain fell at the fastest pace since at least 2006 last month as retailers sought to find a way to win over shoppers hit by the coronavirus lockdown, an industry survey has showed.

Shop prices fell by 2.4% in annual terms, following a 1.7% drop in April, the British Retail Consortium trade body and market research firm Nielsen said.

It was the biggest fall since the BRC records began in 2006.

Clothing and furniture saw the sharpest price drops while food prices increased slightly due to higher business costs, implementing social distancing measures and labour shortages in the industry.

'Continued Upward Pressure'

"We expect to see continued upward pressure on food prices from the effects of the pandemic in the coming months, while non-food prices are likely to remain deflationary with subdued sales," Helen Dickinson, the BRC's chief executive, said.

Britain's most closely watched inflation rate fell to 0.8% in April and could go negative soon, according to Bank of England Deputy Governor Ben Broadbent.

Britain has reopened outdoor markets and car showrooms and all other non-essential retail are set to follow suit from June 15 if the government's social distancing requirements are met.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days