UK Shop Prices Post Decline For Third Straight Month in March
Shop prices across Britain continued their decline into the third straight month during March on account of the lockdowns imposed by the government to contain the second wave of the coronavirus pandemic, which forced several retailers to offer heavy discounts to encourage spending. The BRC-Nielsen Shop Price Index reveals a drop in overall shop prices by 2.4% in the month of March, the same pace of decline as in the previous month.
The worst affected are apparel and footwear, with their prices registering a double-digit drop over 11 out of the past 12 months. The sharp reduction is an indicator of the deep discounts being offered to drive up consumer spending that remains low amid uncertainties in economic conditions driven by the pandemic and lockdowns.
Non-food items’ prices declined at the fastest pace seen since May 2020, falling by 4% – a higher rate of decline than the 3.9% fall seen in February. The rate of decline was also sharper than the average 3.5% decline seen over the past six and 12 months.
Chief executive at BRC, Helen Dickinson, “Low demand and intense competition online will help thrifty consumers find the bargains they are looking for. Unfortunately, many retailers may not be able to sustain these low prices in the coming months. Rising global food prices, at their highest since 2014, as well as increased oil prices and shipping costs, and Brexit red tape will likely begin to filter through, pushing up prices at tills.”
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