BRC-NIELSEN SHOP PRICE INDEX MARCH 2015: Overall shop prices reported deflation for the 23rd consecutive month, accelerating to 2.1% in March, from 1.7% in February

LONDON, 2015-4-9 — /EPR Retail News/ — Overall shop prices reported deflation for the 23rd consecutive month, accelerating to 2.1% in March, from 1.7% in February.

Food reported annual deflation of 0.9% in March from a 0.4% fall in February.

On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.

Non-food deflation accelerated to 2.8% in March from 2.5% in February.

BRC Director General, Helen Dickinson, said: “Prices in Britain’s shops reached another new low, this month by -2.1 per cent. That’s the deepest deflation rate since our records began in December 2006.

“Food prices saw a further drop, largely as a result of promotions for fresh food, whilst non-food prices fell at a faster rate than last month, hitting a twenty-fourth consecutive month of deflation.

“Clothing and electricals continue to outshine by offering consumers eye-catching bargains. In fact, there’s evidence of plenty of promotions and price-cuts in non-food items which should help drive up sales at a time when retailers are turning their attention to the Summer ranges.

“Both retailers and consumers will cheer on a hat-trick of good economic news. The Consumer price index (CPI) has fallen to zero for the first time on record, boosting incomes in real terms and bringing the UK to the brink of a spell of deflation that is expected in the coming months. That fall is largely the result of a deep oil price slump (down 49 per cent on a year ago) and the continuing fierce competition among supermarkets who’ve dropped fuel and food prices over the year.

“Consumer confidence has also soared to a near 13-year high. Retailers will have been hoping that this translated into shoppers being prepared to splash their cash over the long Easter weekend.

“With strong consumer confidence and relatively benign macro-economic conditions we can expect the nation to respond with their feet or with a mouse click in the coming weeks.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “Prices continue to fall across the retail industry and deflation is likely to be with us for the near future, which means shoppers are going to be able to stretch their budgets further when shopping in store or online.

“The implication for food retailers is that this may help sustain the slowly improving sales volumes we have seen in recent weeks, and also encourage consumers to spend some of their savings on affordable indulgences. For many high street fashion, home and outdoor retailers, lower prices are being backed up by attractive promotions which comes at good time as momentum builds in selling late Spring and early Summer ranges.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP.
020 7854 8900. info@brc.org.uk.

BRC-NIELSEN SHOP PRICE INDEX JANUARY 2015: Overall shop prices reported deflation for the 21st consecutive month

LONDON, 2015-2-4 — /EPR Retail News/ — Overall shop prices reported deflation for the 21st consecutive month, decelerating to 1.3% in January, after reporting deflation of 1.7% in December.

Food reported annual deflation of 0.5% in January after reporting inflation of 0.1% in December.

On a 12 month average basis, the Shop Price Index reported deflation of 1.6%.

Non-food deflation slowed to 1.8% in January from 2.8% in December.

BRC Director General, Helen Dickinson, said: “For twenty-one consecutive months prices in Britain’s shops have fallen, this month by -1.3 per cent. It’s the second time in three months that we’ve seen food prices fall, accelerating to their lowest levels on record”.

“Clearly customers were taking advantage of the January sales with good bargains for furniture, flooring and electricals resulting in plenty of stock shifting.

“There is some evidence that the heavy discounting in early December resulted in some retailers pulling their new season stock forward, which meant a significant amount of goods were sold at full price in January.

“The halving of the oil price since the summer has helped the retail supply chains with the impact of these falls, continuing to make their way through to shop prices.

“With the outlook for inflation low, the jobs market robust and rising real incomes gathering pace, the outlook for consumer spending looks positive. Deflation doesn’t always translate into bad news for retailers. The Producers Price Index (which tracks the cost of raw materials to producers) remains deflationary, so retail businesses will continue to see decreases in their own input costs for the foreseeable future. To remain competitive, retailers will continue passing these savings on to the consumer.

“2015 is shaping up to be win-win year for shoppers and retailers alike.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “Over the last six months we have seen food inflation falling and as we start 2015, we now have food deflation. Whilst falling prices are of course welcomed by shoppers, the impact is that there is only marginal value sales growth across the industry. With further price cutting expected by the major Supermarkets the near term outlook is for the continuation of a low growth trading environment. Deflation also continues in clothing and electrical with non-food retailers still able to pass on the benefit of falling supply chain costs to the consumer.”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP.
020 7854 8900. info@brc.org.uk.

BRC-NIELSEN SHOP PRICE INDEX DECEMBER 2014: Overall shop prices reported deflation for the twentieth consecutive month

LONDON, 2015-1-7 — /EPR Retail News/ — Overall shop prices reported deflation for the twentieth consecutive month, decelerating to 1.7% in December, after reporting deflation of 1.9% in November.

Food reported annual inflation of 0.1% in December after reporting deflation of 0.2% in November.

On a 12 month average basis, the Shop Price Index reported deflation of 1.6%.

Non-food deflation slowed marginally to 2.8% in December from 2.9% in November.

BRC Director General, Helen Dickinson, said: “Prices in Britain’s shops have continued to tumble, this month by -1.7 per cent. This is the twentieth consecutive month that customers have been able to go to the shops, fill their baskets and pay less for their goods than the year before. This is an incredible run of good fortune for consumers and in the medium term at least looks set to continue. A number of key commodities in the retail supply chain (in particular, oil) have fallen dramatically recently and the impact of these falls will continue to make its way through to shop prices for some time to come.

“This significant run of deflation isn’t all bad news for retailers. The Producers Price Index (which tracks the cost of raw materials to producers) is deflationary so retail business have seen significant decreases in their own input costs. However, fierce competition – the hallmark of the UK retail industry – has seen these savings passed on directly to consumers. It’s a win-win scenario that many are predicting will continue long into 2015.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “The high levels of discounting across most retail channels in 2014 will have given a boost to sales and the year ended with shop price inflation close to record lows in December, so it’s the consumer who has been the winner all round.

‘’With little external pressure to move prices upwards and an uncertain level of consumer demand, retailers will be cautious about price increases so we can expect a continuation of deflation for at least the first part of 2015”

British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP.
020 7854 8900. info@brc.org.uk.