BRC: Overall Shop Price deflation was 0.3 per cent in August

London, 2017-Aug-30 — /EPR Retail News/ —

BRC – NIELSEN SHOP PRICE INDEX – August 2017

Period Covered: 07 – 11 August 2017

  • Overall Shop Price deflation was 0.3 per cent in August, a slight deceleration from the 0.4 per cent fall in July. Except for June of this year, this is the shallowest deflation rate since November 2013.
  • The deflation rate for prices of Non-Food products was 1.3 per cent, the slowest rate of deflation since April 2013. Electronics posted the slowest rate of deflation on record (the SPI started in 2006).
  • Food prices increased by 1.3 per cent in August on the same month last year, a slight increase on July, when Food price inflation stood at 1.2 per cent.
  • This is the second month we have seen an easing in the inflation rate of Fresh Food. It slowed to 0.8 per cent in August from 1.0 per cent in July.
  • In contrast, the inflation rate of Ambient Food prices accelerated to 1.9 per cent in August from 1.6 per cent in July. This is the highest inflation rate for Ambient Food since December 2013.

Helen Dickinson OBE, Chief Executive, British Retail Consortium:

“Non-Food deflation reached its lowest rate in more than four years in August as overall Shop Prices edged closer to inflation.

“The reality is that with protection from hedging policies coming to an end, Non-Food retailers are running out of options for protecting shoppers from the significant increases in the price of imported goods since the EU referendum in June last year. We expect Non-Food prices to continue trending towards year on year inflation.

“Food inflation also moved upward, driven by an acceleration of Ambient Food inflation, although the slowdown in Fresh Food inflation for a second month kept a lid on overall increases in the price of the weekly grocery shop. The seasonal availability of fruit and vegetables from UK suppliers is currently shielding shoppers from the impact of higher import prices. However, as Winter approaches and our dependence shifts to imported goods, that will change.

“While the dynamics of individual elements of the index play out in different ways from month to month, the fact is that the overall pressures on prices are still weighted upwards. That will put an increasing strain on already stretched family budgets. Therefore, it is imperative that the Government puts the UK’s households at the top of its agenda as it enters into negotiations on our future trading relationship with the EU. It should do all it can to avoid a situation where further tariffs and administrative costs lead to price increases on top of those already being faced by consumers.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen:

” Food inflation continues to be kept in check by lower increases in fresh and seasonal  foods and as fresh is typically over 40% of the shopper spend in supermarkets, this is helping to offset the rising cost of living in household bills. Whilst consumer sentiment is on the turn and shoppers are becoming cautious about spending on big ticket items, prices are still very competitive on the high street and spend on food and drink has been strong over the summer, albeit disrupted by the changeable weather in August ”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

British Retail Consortium: Shop prices in June edged closer to ending a four-year deflationary trend

London, 2017-Jul-05 — /EPR Retail News/ —

BRC – NIELSEN SHOP PRICE INDEX – JUNE 2017

Period Covered: 05 — 09 June 2017

  • Overall shop price deflation was 0.3 per cent in June, a slight deceleration from the 0.4 per cent fall in May. This is the shallowest deflation rate since November 2013.
  • The deflation of non-food products was 1.4 per cent, comparable to May’s deflation of 1.5 per cent and April’s of 1.4 per cent.
  • Food prices increased on average by 1.4 per cent in June, a similar pace to the 1.4 per cent May increase and the highest since January 2014.
  • Fresh food prices seem to be on an upward trajectory, recording a 1.4 per cent increase in June, 0.2 percentage points higher than in May. This is the highest increase since February 2014.
  • Ambient food inflation stood at 1.5 per cent in June, a slowdown from the 1.8% increase in May.

Helen Dickinson OBE, Chief Executive, British Retail Consortium:

“Shop prices in June edged closer to ending a four-year deflationary trend, as feed-through from the depreciation of the pound and rising commodity prices continues.

“The fact that the headline number, -0.3 per cent, shows that prices are still down on last year should not be misunderstood. The year on year numbers belie the fact that prices have been heading upwards for the last six months; it’s just that significant deflation in the second half of 2016 means there has been considerable ground to make up in the year on year figures.

“Although heading upwards, the speed of price increases was checked in June. Food price inflation was steady on last month, albeit in firmly positive territory; whilst varied performances in the non-food categories netted out to a slight reduction in deflation.

“The steadying of inflation in June is likely a brief hiatus; resulting from the interplay of short term influences on pricing, such as good weather delaying mid-season promotions into June and the longer term competitive pressures constraining the pass through of all costs. We expect shop price inflation to continue trending upwards in coming months.

“The reality is that cost pressures faced by retailers continue to mount. These pressures arise both from market driven increases in the underlying cost of goods and as a result of Government policies. There is a limit to the ability of retailers to protect consumers by absorbing these impacts into their margins, as a result further price increases are inevitable. With that in mind and with the UK’s trading relationships under discussion, it’s of the utmost importance that the Government does all it can to limit any further cost increases that could further adversely impact the finances of the UK’s consumers.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen:

“With inflation rising in essential goods and services, many households are now seeing their monthly household expenditure come under pressure.  Whilst this may add to the uncertainty around discretionary spending, the good news is that shop prices are increasing at a slower rate. Shoppers are also able to find further savings in retail with low price strategies across the grocery sector and competition across the marketplace keeping prices as low as possible.“

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

Change in Sight After Four Years of Falling Shop Prices

London, 2017-May-08 — /EPR Retail News/ —

Period Covered: 03- 07 April 2017

  • Overall shop prices reported deflation of 0.5% in April from the 0.8% fall in March. This is the shallowest deflation rate since November 2013.
  • Non-food deflation decelerated to 1.4% from the 2.0% decline in March. This is the shallowest deflation rate since April 2013.
  • Food inflation decelerated to 0.9% from the 1.0% rise in March.
  • Fresh Food reported inflation of 1.0% in April from the 0.9% rise in the previously month.
  • Ambient Food inflation decelerated to 0.8% in April from the 1.3% rise in March.

HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM:

“This month’s figures mark the four-year anniversary of falling shop prices as competition in the industry continues to keep a lid on prices for consumers. Nevertheless, the rate of deflation has been decelerating month-on month as retailers battle with inflationary pressures resulting from the impact of the weaker pound on input prices.

“Non- food categories were the biggest contributor to the easing of overall deflation this month, recording the shallowest rate since April 2013. Meanwhile, food inflation paused and remains at around one per cent. This is actually relatively low in the in the face of input costs that are rising much faster.

“Prices are undoubtedly on an upward trajectory, which we expect to gradually play out over the course of the year. With the squeeze on household incomes tightening, the retail industry expects plans from the next Government that puts consumers first in the Brexit negotiations, ensuring that ordinary shoppers are protected from the cost of unwanted new tariffs.”

MIKE WATKINS, HEAD OF RETAILER AND BUSINESS INSIGHT, NIELSEN:

“Shoppers are seeing inflation in travel, fuel and when spending away from home, so retailers are cautious about passing on cost price increases. So there continues to be deflation in shop prices albeit we are already seeing inflation in food. In the non-food channel and with a late Easter there was a need to stimulate demand and clear stock in readiness for summer ranges, and seasonal promotions also kept prices low as retailers looked to increase footfall and maintain consumer spend.”

BRC Members and Subscribers an view the full report here

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

BRITISH RETAIL CONSORTIUM: Overall shop prices reported deflation of 1.0% in February

  • Overall shop prices reported deflation of 1.0% in February, a sharp deceleration from the 1.7% fall in January.
  • Non-food deflation decelerated to 1.8% in February, an easing from the 2.3% decline in the previous month.
  • Food reported inflation of 0.4% in February, a sharp acceleration from the 0.8% fall in January. This is the first inflationary rise since April 2016.
  • Fresh Food reported a marginal inflation rate in February, up 0.1% from the 1.2% fall in each of the previous three months.
  • Ambient Food reported annual inflation for the second time in three months, rising 0.8% in February from the 0.2% decline in January.

London, 2017-Mar-06 — /EPR Retail News/ — HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM:

“Shop prices in February were 1 per cent lower than the same month last year, continuing a trend of year-on-year price falls that has lasted nearly four years.

“However, it is clear that the significant underlying cost pressures, which have been building over the last year are beginning to filter through into shop prices. Global food prices were on average 16 per cent higher at the beginning of this year compared to last, whilst over the same period the value of the pound fell around 15 per cent. Despite this, February saw an increase of just 0.4 per cent in the prices of food sold in shops; proving retailers’ resilience in managing to largely shield consumers from cost increases.“For the time being, consumers continue to benefit from an annual fall in non-food prices, which were down 1.8 per cent on the previous year. However, the rate of deflation has eased considerably from a monthly perspective, which can be explained in part by an end to the promotional activity in January, after a weak festive sales performance in some non- food categories.

“Looking further ahead, retailers, who operate in a highly competitive market with narrow margins, will be increasingly hard pushed to protect their customers from the inevitable impact of these rising cost pressures. We can therefore expect this impact to start manifesting in shop prices over the course of the year.”

MIKE WATKINS, HEAD OF RETAILER AND BUSINESS INSIGHT, NIELSEN:

“Whilst food inflation has returned, the competition between retailers means that price increases passed onto consumers in February were relatively small, and there were also some seasonal and weather related increases. Non-food prices remain deflationary and in part this reflects the structural change underway in non-food retailing. At the moment consumer sentiment around spending intentions is strong so we don’t anticipate any significant change on retail spend over the next few months even if shop price inflation gains more momentum.”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk

Source: BRC

Consumers benefitted from falling shop prices in January

  • Overall shop prices reported deflation of 1.7% in January, an acceleration from the 1.4% fall in December.
  • Non-food deflation accelerated to 2.3% in January, deeper than the 1.9% decline in the previous month.
  • Food deflation accelerated to 0.8% in January from the 0.7% decline in December. This compares with a 0.7% fall on a 3-month basis.
  • Fresh Food deflation remained at 1.2% for the third consecutive month.
  • Ambient Food moved back into deflationary territory after a marginal rise in December, falling 0.2% in January.

London, 2017-Feb-03 — /EPR Retail News/ — HELEN DICKINSON OBE, CHIEF EXECUTIVE, BRITISH RETAIL CONSORTIUM:

“January bucked the monthly trend of an easing in shop price deflation, with prices down 1.7 per cent compared to January 2016; a larger year on year fall in shop prices than the 1.4 per cent fall in December. For now, consumers continue to benefit from falling shop prices year on year. However, fluctuations in the monthly figures belie an underlying trend of building cost pressures that are gradually feeding through from the fall in sterling combined with higher commodity prices. This will inevitably mean that we start to see a general upward trend in inflation over 2017.

“In fact month-on-month food prices were up, although the impact of this on inflationary pressure was offset by the discounting of excess stock by a number of non-food retailers after a tepid sales performance over the festive period.

“Retailers’ focus will be on protecting their customers from the effects of increasing input costs, but with the cost of doing business rising and margins and profits being squeezed, their efforts will require the support of public policies that help them keep prices low for shoppers. This means capping the annual uplifts in business rates and ensuring no new tariffs remains a core objective of the negotiations on exiting the EU.”

MIKE WATKINS, HEAD OF RETAILER AND BUSINESS INSIGHT, NIELSEN:

“Consumer demand was perhaps better than expected at the end of last year and retailers are still managing to limit currency related cost increases being passed onto shoppers. This is helping to give some stability to the industry at the start of 2017. However, there is already inflationary pressure elsewhere in the economy and this will start to have an impact on the disposable income of households later in the year.”

Contact:
BRC Press Office
TELEPHONE: + 44 (0) 20 7854 8924
EMAIL: media@brc.org.uk
OUT OF HOURS: +44 (0) 7557 747 269

Source: BRC

BRC – NIELSEN SHOP PRICE INDEX: Overall shop prices reported deflation of 2.0% in August, from the 1.6% decline in July

LONDON, 2016-Sep-06 — /EPR Retail News/ — Helen Dickinson OBE, Chief Executive, British Retail Consortium. “Shop prices continued their record run in deflationary territory. Lower prices this August compared to last were driven by a combination of continuing promotional activity, softening oil prices and a global supply glut of wheat weighing on food prices.

“The devaluation of sterling in wake of the referendum will put upward pressure on shop prices. But that’s likely to take several months to properly feed through, given that retailers won’t feel the brunt of the cost increases until existing contracts with foreign suppliers come to an end. Even then, retailers will have to make a decision about when and how much to pass onto consumers. Given the strength of competition in the market, and if the economy softens in line with predictions, any pass through may be more limited than implied by the exchange rate movement. As far as they can, retailers will endeavour to mitigate impacts by looking for productivity gains in their own businesses, rather than compromising on the value they are offering to consumers.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen
“Lower prices than a year ago across most channels with further price cuts by Supermarkets has been good news for shoppers and helped to keep consumer spend buoyant over the summer. Competition for discretionary spend is likely to intensify as we head towards the end of the year, so retailers will be keen to keep prices low and promotions sharp.”

For Media Enquiries:
British Retail Consortium
Tel:  0207 854 8924
Email:  zoe.maddison@brc.org.uk

Source: British Retail Consortium

British Retail Consortium: We’ve seen three years of falling shop prices

  • Overall shop prices reported deflation of 1.7% in April, unchanged from the decline seen in March. This is in-line with the 12-month average
  • Non-food deflation accelerated to 2.9% in April from the 2.6% fall in March. This is deeper the 12-month average of -2.7%
  • Food returned to inflationary territory in April, up 0.1% compared with the 0.4% decline in the previous two months
  • Fresh Food reported annual deflation of 0.5%, slowing from the 0.9% decline seen in March
  • Ambient Food inflation rose further in April, up 1.0% from the 0.4% rise in March. This is above the three-month average of 0.5% and the 12-month average of 0.8%

London, 2016-May-06 — /EPR Retail News/ — Helen Dickinson OBE, Chief Executive, British Retail Consortium

“This month marks an important anniversary for retailers and shoppers alike. We’ve seen three years of falling shop prices, with prices falling by 1.7% in April compared to a year earlier. The thirty-six consecutive months of price falls is being driven by intense competition across the industry. It has knock on implications for margins and profitability given the combination of continued investment in digital and rising cost pressures, compounded by recent policy announcements. Ensuring they do not pass on these cost increases, alongside the intensity of competition in the market, are the principal reasons why retailers continue to respond to their customers’ demands for value. As this month’s figures show, this has helped shoppers and kept inflation (and therefore interest rates) low to betterment of the UK economy.”Food prices rose a fraction (0.1%), marking the fourth time over the last 10 months. While the prices for fresh goods fell 0.5%, the ambient category rose 1.0%.”Non-food prices marked the thirty-seventh month of deflation, with prices falling 2.9% during the month. Excellent bargains were to be found in clothing and footwear, electricals and furniture and floorcovering. Clothing and footwear saw a significant fall of 7.1%, highlighting the heavy discounting in the run up to the summer season.”Hopefully today’s anniversary of falling prices will be a strong remedy to consumer confidence which has weakened significantly since the beginning of the year.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen
“Whilst some food prices have stabilised this month, this is partly due to external factors, and will probably be short term. The underlying trend in shop prices is downwards with continued price cutting by Supermarkets which is driving deflation. Further discounts may also be necessary on the high street as the cool spring has impacted the sales of many retailers, and an increase in the levels of promotion over the next few weeks to drive footfall is not out of the question.”

For Media Enquiries:
Bryan Johnston
British Retail Consortium
T 0207 854 8936
E Bryan.Johnston@brc.org.uk

Source: BRC

BRC – NIELSEN March 2016: This month shoppers can celebrate three years of falling non-food prices

BRC – NIELSEN SHOP PRICE INDEX – MARCH 2016
NON-FOOD PRICES FALL FOR 36TH CONSECUTIVE MONTH

Period Covered: 07 – 11 March 2016

– Overall shop prices reported deflation of 1.7% in March from the 2.0% decline in February.
– Non-food deflation rose to 2.6% in March from the 3.0% fall in February.
– Food deflation remained at 0.4% for the second consecutive month.
– Fresh Food deflation reported annual deflation of 0.9% for the second month in a row.
– Ambient Food inflation rose to 0.4% in March, slightly above the 0.3% reported in February

LONDON, 2016-Apr-07 — /EPR Retail News/ — Helen Dickinson OBE, Chief Executive, British Retail Consortium

“This month shoppers can celebrate three years of falling non-food prices. While non-food deflation slowed to 2.6 per cent in March, lower than the 3.0 per cent reported over the last three months, March was the 36th month in which consumers have benefited from falling prices. March also marked the 35th month of falling overall prices.

“Overall, shop prices fell by 1.7 per cent last month compared to March 2015 as a result of continuing intense competition and retailers ongoing investment in price.

“Food prices dropped 0.4 per cent for the second consecutive month, driven largely by reductions in fresh food, while ambient prices rose slightly.

“Despite consumer confidence remaining at zero, a relatively benign economic environment (inflation remains very low and oil is trading at just under $40 per barrel) and a fiercely competitive market will see retailers continue to respond to their customers with prices and promotions to maintain market share as the Spring season kicks off.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen

“Shoppers are still making changes to how they spend to stay within their household budget and looking out for price cuts and promotions is one of the ways to save money. So with shop prices continuing to be lower than a year ago this is good news for shoppers. With Spring arriving, retailers will be hoping that this drives store traffic as so far this year, retail sales have been rather unpredictable.”

For Media Enquiries:
Zoe Maddison
British Retail Consortium
T 0207 854 8924
E Zoe.Maddison@brc.org.uk

BRC Chief Executive Helen Dickinson: Another fall in shop prices was seen in February

  • Overall shop prices reported deflation of 2.0% in February from 1.8% in January.
  • Food returned to deflationary territory, falling 0.4% in February from January’s 0.1% rise.
  • On a 12-month average basis, the Shop Price Index reported deflation of 1.8%.
  • Non-food deflation remained at 3.0% for the third consecutive month.

LONDON, 2016-Mar-03 — /EPR Retail News/ — BRC Chief Executive, Helen Dickinson OBE, said: “Another fall in shop prices was seen in February, down 2.0 per cent compared with a year ago and a further fall on the numbers we saw in January as competition in the industry continues apace. This now marks the 34th consecutive month of price drops and 35th for non-food prices.

“Within non-food, clothing, footwear, electricals, DIY, and books all saw large reductions in prices while the move back into deflationary territory in the food category confirmed that last month’s marginal rise was just a blip.

“With consumer confidence falling back and wage growth remaining subdued, retailers continue to support their customers with prices and promotions to maintain market share in the tough trading environment.

“Against this back drop we are asking government to work more collaboratively with us to address business rates and ensure the successful implementation of policy measures, such as the National Living Wage and the apprenticeship levy.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said:
“Getting a larger share of the wallet of shoppers continues to a challenge for many food and non-food retailers and competition remains intense on the high street. Food prices continue to fall as Supermarkets are working hard to stimulate sales with price cuts rather than multi-buy promotions, and this is leading to continued deflation in food. With uncertain market conditions, offers and discounts are likely to continue for the time being.”

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

BRC Chief Executive, Helen Dickinson: Prices in Britain’s shops have continued to tumble in December 2015

– Overall shop prices reported deflation of 2.0% in December from the 2.1% decline seen in November.

– Food reported annual deflation of 0.3% unchanged from November’s rate.

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

– Non-food deflation decelerated to 3.0% from 3.3% in November.

LONDON, 2016-1-7 — /EPR Retail News/ — BRC Chief Executive, Helen Dickinson, said: “Prices in Britain’s shops have continued to tumble, this month by 2.0%. For the last two years and eight months, customers have been able to fill their baskets, whether virtual or physical, and pay less for their goods than the year before. This is an incredible run of good fortune for shoppers who’ve been preoccupied with picking up presents for family and friends, as well as themselves ahead of the holiday season.

“With retailers continuing to invest in price, relatively low commodity prices and intense competition a hallmark of the industry, we can expect falling prices to continue in the medium term.

“A number of key commodities in the retail supply chain (in particular, oil which is now trading under $40 per barrel) 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.

“December also marked the 33rd month of non-food price drops. Non-food prices fell by 3.0% – albeit down from 3.3% in November – driven largely by reductions in clothing, footwear, electricals, DIY, gardening and hardware prices. For the 4th consecutive month all non-food categories saw prices fall. While food prices saw less movement, falling by 0.3%.

“Although trading statements are starting to filter through, we will have to wait until next week to learn if the lower priced goods have translated into positive sales for the market as a whole during the all-important Christmas trading period.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “We can expect the current levels of deflation across the retail industry to continue for the first half of 2016. There is little upward inflationary momentum from global commodity or oil prices and locally, the price war in food retailing looks set to continue. After the unseasonably mild autumn and early winter, many non-food retailers will use price cuts and targeted promotions early in the year, to help sell through and to benefit from any rise in real wages.”

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

BRC-NIELSEN: Shop prices fell by 2.1% in November from a 1.8% decline in October

  • Overall shop prices reported deflation of 2.1% in November from a 1.8% decline in October, a joint record low.
  • Food reported annual deflation of 0.3% from a 0.4% fall in October.
  • On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.
  • Non-food deflation decelerated to 3.3% from 2.7% in October.

LONDON, 2015-12-4 — /EPR Retail News/ — BRC Chief Executive, Helen Dickinson, said: “Shop prices fell by 2.1% last month as a result of retailers continuing to invest in price, intense competition in the run up to Black Friday and lower commodity prices, marking a joint record low for falling prices (with March 2015).

“November also marked the 31st consecutive month of deflation and the 32nd consecutive month of non-food price drops. Non-food prices saw a remarkable 3.3% drop, driven largely by reductions in clothing, footwear, electricals, DIY, gardening and hardware prices. Although the survey period does not cover Black Friday, it is likely that some retailers were discounting early in November in order to spread consumer spending over a longer period. Electricals for instance saw prices down 4.3% on last year.

“Food prices fell by 0.3% as the impact of past falls in oil, weaker demand in emerging markets and a strong pound, helped support a continued deflationary environment. Lower commodity prices will help food retailers to continue to offer the best possible prices. Coffee, lean hogs, soybean, and cattle feeder all demonstrated double digit declines in the 12 months to the end of our survey period.

“This trading environment should be considered with the impact of the industry’s regulatory burden. BRC analysis shows that the combined cost of policy announcements since the General Election adds up to approximately £14 billion over the next five years. The industry will continue to make the case to government, which has extended its review of business rates to early 2016, to properly look at rebalancing this tax away from property intensive industries in order to ensure that the introduction of the living wage does not have unintended consequences on our local communities and jobs .”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “For best part of two years we have had shop price deflation which has helped overall consumer spend remain buoyant, and with consumer confidence back to an all-time high, shoppers are now feeling more optimistic about spending. Falling prices across the High Street and food retailers in November will be another welcome boost for shoppers as they plan their Christmas spending.”

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

SOURCE: British Retail Consortium

BRC Director Dickinson: September saw significant prices drops in both food and non-food goods

  • Overall shop prices reported deflation of 1.9% in September from a 1.4% decline in August.
  • Food reported annual deflation of 0.5% from a 0.2% rise in August.
  • On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.
  • Non-food deflation accelerated further to 2.9% from 2.4% in August.

LONDON, 2015-10-7 — /EPR Retail News/ — BRC Director General, Helen Dickinson, said: “September saw significant prices drops in both food and non-food goods marking the 29th consecutive month of falling shop prices.

“The temporary fluctuation of annual food price rises has come to an end with food returning to deflationary territory. Prices fell by 0.5 per cent with fresh food falling deeper than last month – by 1.5 per cent – while ambient prices rose by 0.8 per cent.

“Overall, shop prices fell by 1.9 per cent this month, largely driven by competition and great deals across a large number of categories. Non-food prices fell even faster than the previous month, reporting drops from 2.4 per cent in August to 2.9 per cent in September. Heavy discounting could be seen in electricals, books, stationery and home entertainment. It was a particularly good month to hunt for bargains in clothing and footwear with prices falling by 6 per cent in this category.

“While consumer confidence slowed slightly the fortuitous mix of near flat inflation and falling prices in both food and non-food will help to maintain retailers confidence for the foreseeable future.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “It`s good news for shoppers that shop prices are again lower than a year ago in supermarkets and this will help stimulate spending in the important last quarter of the year. This will allow shoppers to plan with more confidence when juggling the household budget. Within food retailing, there is still downward pressure on prices and this is expected to continue as supermarkets battle for the wallets of the Christmas shopper, whilst on the high street, many non-food retailers are using strong, seasonal promotions to drive sales growth.”

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

 

BRC-NIELSEN SHOP PRICE INDEX: Shop prices fell by -1.3 per cent in June 2015; 26th consecutive month of prices drops

– Overall shop prices reported deflation of 1.3% in June up from 1.9% in May.

– Food reported annual deflation of 0.4% the lowest deflation rate since February 2015.

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

– Non-food deflation slowed to 1.9% in June from 2.5% in May.

LONDON, 2015-7-8 — /EPR Retail News/ — BRC Director General, Helen Dickinson, said: “Shop prices fell by -1.3 per cent this month marking the 26th consecutive month of prices drops. This is a slight slowdown in falling prices when compared with recent months.

“Consumer confidence hit a 15 year high which suggests that shoppers will feel more comfortable about buying major purchases. It also suggests that consumer spending, one of the main drivers of the recovery, should remain robust over the summer.

“While non-food prices fell at a slower rate this month (-1.9 per cent against -2.5 per cent in May), June marked the 27th month of non-food deflation. Shoppers wishing to invest in their home won’t be disappointed with great deals to be found in furniture and flooring and gardening and hardware in particular.

“Food has been deflationary throughout 2015 but the pace slowed in June, largely as the result of the rebound of oil prices in recent months.

“We’re seeing a strong appetite for consumer credit, inflation remains at an historic low, unemployment continues to fall and wages have started to rise, the wider macro-economic data continues to be supportive for the consumer.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “Retailers continue to use price cuts and promotions to stimulate sales which is helping to maintain shop price deflation, and we see little evidence to suggest that prices will rise in the near future. With many food retailers still using price cuts to attract new shoppers, this is lowering the cost of the weekly shop and so the overall CPI figure in the UK. Deflation and price led competition will continue to be a key driver of sales growth for some time yet”

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

 

BRC Director Helen Dickins: Prices in Britain’s shops continue to fall in May by -1.9 per cent

  • Overall shop prices reported deflation of 1.9% in May unchanged from April.
  • Food reported annual deflation of 0.9% in April for the third consecutive month.
  • On a 12-month average basis, the Shop Price Index reported deflation of 1.8%.
  • Non-food deflation remained at 2.5% in May.

LONDON, 2015-6-3 — /EPR Retail News/ — BRC Director General, Helen Dickinson, said: “Prices in Britain’s shops continue to fall, this month by -1.9 per cent.

“Food prices remained at their record low for a third consecutive month, with low priced fresh food helping to keep prices down. We’ve now had five consecutive months of food prices falling. While ambient food saw a small rise fresh food hit a new record low.

“May saw the 25th consecutive month of falling shop prices and falling non-food prices now in their third year.

“Wider macro-economic data continues to be supportive for the consumer. The main measure of UK inflation turned negative in April for the first time on record, with the rate falling to -0.1%. This is expected to be temporary and should result in increased consumer spending. The price of staple commodities (wheat, corn and soybean) remain low and consumer confidence is still hitting a thirteen year high.

“Now that the General Election has taken place, government policy is likely to advance rapidly. A number of areas will obviously require consideration, not least, ensuring that the structural review of business rates remains ambitious and far-reaching. This is vitally important for retailers who are presently burdened with above inflation operating costs.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “Retailers continue to use price cuts and promotions to stimulate sales which is helping to maintain shop price deflation, and we see little evidence to suggest that prices will rise in the near future. With many food retailers still using price cuts to attract new shoppers, this is lowering the cost of the weekly shop and so the overall CPI figure in the UK. Deflation and price led competition will continue to be a key driver of sales growth for some time yet.”

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

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.

 

BRC-NIELSEN SHOP PRICE INDEX NOVEMBER 2014: Overall shop prices reported deflation for the nineteenth consecutive month, unchanged at 1.9% in November

LONDON, 2014-12-4 — /EPR Retail News/ — Food reported annual deflation for the first time since the series began in December 2006, falling 0.2% in November.

Both the fresh and ambient food categories reported annual deflation, falling 0.3% and 0.2% respectively.

Non-food deflation slowed marginally to 2.9% in November from 3.1% in October.

Helen Dickinson, British Retail Consortium Director General, said “Food prices were deflationary in November – the first time since our records began in December 2006. Non-food prices also fell, compared with last year, meaning overall shop prices have been deflationary for nineteen consecutive months. November equalled the record low deflation of 1.9% reported in July 2014.

“We also saw the first rise in real incomes for over five years. Downward pressure from falling shop prices pushed the overall rate of inflation in the economy below the rise in average wages. With the recovery in the labour market robust, the outlook for further rises in real incomes looks positive.

“Falling commodity prices, particularly oil, suggests the outlook for inflation remains benign. The price of oil, a near five year low, has a significant impact on the costs of producing food, impacting everything from the cost of feed to transport. Given the intensity of competition in the food sector, these savings have been passed on to consumers in the form of lower prices. The strong Pound has also helped keep prices low as imports are now cheaper and it’s worth remembering that the UK gets roughly a quarter of its food beyond its shores.

“At the same time, we’re seeing the big supermarkets investing in price cuts worth millions of pounds during a hugely competitive period in the food market. With food prices down, wages up, a highly competitive market keeping inflation low; and Christmas around the corner, there are plenty of good reasons to assume a strong trading period lies just head of us”.

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: ” It’s been another slow start to Christmas trading and momentum on the high street has been reliant on retailers promoting and running ‘discount days’ to drive shoppers into store. With little inflationary pressure we anticipate the good festive deals to continue and the savvy Christmas shopper can expect some very competitive prices across food retailers, in particular for fresh and seasonal foods, where some prices are lower than last year.”

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

BRC-NIELSEN SHOP PRICE INDEX SEPTEMBER 2014: Overall shop prices reported deflation for the 17th consecutive month, accelerating to 1.8% in September from 1.6% in August

LONDON, 2014-10-10— /EPR Retail News/ — Overall shop prices reported deflation for the seventeenth consecutive month, accelerating to 1.8% in September from 1.6% in August.

Food inflation remained at 0.3% in September – equalling the lowest ever recorded.

Fresh food inflation was flat for September; this is the first month since Feb 2010 that the category hasn’t experience inflation.

Non-food reported acceleration in deflation of 3.2% in September from 2.9% in August.

Helen Dickinson, British Retail Consortium Director General, said: “The seventeenth consecutive month of deflation is good news for hard-pressed households. Retailers are turning their attention to Christmas by reading current conditions and matching consumer sentiment well with their promotions and offers.

“In particular, food inflation remained at an all-time low. In September, over a third of all groceries going through the tills were on some sort of promotion or special offer, meaning savvy shoppers are picking the deals that work best for them – allowing them to effectively budget. Fresh food prices remained flat – something not seen since February 2010 – which will help those struggling in the current economic climate, including the country’s least affluent 30% who spend as much as 16% of their income on food and non-alcoholic goods. Non-food prices fell significantly, mainly fuelled by great bargains in furniture, flooring and electricals as increased activity in the housing market supported robust sales.

“Consumers can take heart that the outlook for inflation remains modest. Falling commodity prices, the strengthening of sterling, benign pressure in the supply chain and, critically, fierce competition across the retail industry suggests lower shop prices for consumers will continue.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “There are historic low levels of price increases across the high street, and with more price cuts expected from Supermarkets over the next few weeks shoppers will continue get great savings. Whilst sales patterns are still difficult to predict not least following the unusually warm late summer, we can anticipate a continuation of the current low levels inflation and even deflation for the rest of the year. This will help shoppers to plan their spending in the run up to the start of Christmas trading.”

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