UK Shop Prices Decline as Domestic Demand Weakens
Arslan Butt • 1 min read
According to data released by British Retail Consortium (BRC), UK shop prices have declined to their lowest levels seen in over a year. The BRC Shop Price Index reveals that overall shop prices declined by 0.6% YoY in September, worse than the 0.4% decline seen in August. This is the steepest decline in shop prices since May 2018.
Food inflation also slid lower in September to 1.1% from 1.6% in August on the back of falling domestic demand for vegetables and a decline in prices internationally for meat. BRC Chief Executive Helen Dickinson has already cautioned that weak demand is pressuring the already tight margins of UK retailers and that the British government should consider reforming business rates to support the ailing retail sector.
Ongoing Brexit uncertainties are expected to put additional pressure on consumers’ discretionary spending, which could keep the retail industry under strain in the coming months as well. According to Head of Retailer and Business Insight at Nielsen, Mike Watkins, “We anticipate more promotional savings for shoppers and inspiring media campaigns that help to drive incremental sales.”