Retail business across Britain offered deeper discounts in a bid to get customers back into their stores after the country emerged out of lockdown. Recent research by the British Retail Consortium (BRC) reveals that average shop prices declined by 1.6% YoY during August after falling by 1.3% in the previous month.

Non-food prices registered a sharper fall in August, from 2.9% in July to 3.4%, driving the decline in the overall reading. Meanwhile, food inflation also fell from 1.5% in July to 1.3% in August, as availability of fresh produce improved.

Chief executive at BRC, Helen Dickinson, notes, “Many retailers have continued to run promotions and sales in order to entice customers to spend and make up for lost ground during lockdown.”

Latest industry data reveals that despite the easing of lockdown measures, retail sales are yet to rebound as consumers remain more cautious about venturing out and spending their money. The slight uptick in retail sales could be a temporary one driven by pent-up demand, while consumers remain hesitant to make purchases due to the uncertainty in economic conditions.