Britain’s Shop Prices Fall Sharply as Non-Essential Retailers Offer Deep Discounts - Forex News by FX Leaders
Britain's Shop Prices Fall Sharply as Non-Essential Retailers Offer Deep Discounts

Britain’s Shop Prices Fall Sharply as Non-Essential Retailers Offer Deep Discounts

Posted Wednesday, June 3, 2020 by
Arslan Butt • 1 min read

Shop prices in Britain fell sharply during May as retailers tried to entice consumers by offering deeper discounts, especially on clothing and furniture, amid the coronavirus pandemic-led lockdown. BRC-Nielsen’s shop price index indicate a drop in shop prices by 2.4% during May after falling by 1.7% in the previous month.

Most of the decline in shop prices was driven by retailers of non-essentials who were forced to shutter their businesses during the lockdown and were unable to garner any sales during the period. Shop prices among non-essential retailers fell by 4.6% during May, the steepest decline seen since December 2006. In April, their shop prices had fallen by 3.7%.

Inflation in food prices also marked a decrease during May, falling from 1.8% in April to 1.5%. Prices of fresh foods also rose at a slower pace, from 1% in April to 0.5% during May.

Chief executive at BRC, Helen Dickinson, observes, “Shop prices in May fell at their fastest rate since 2006, which was largely driven by the drop in non-food prices. Year-on-year food prices increased slightly due to higher business costs, implementing social distancing measures and the upward pressure from labour shortages, but were down on the previous month as more home-grown produce became available.”

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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