// Shop price inflation decelerated from 0.9% to 0.4% in April
// UK shop price inflation falls for first time since October
// April saw a general increase in promotional activity
Shop price inflation has slowed down in April thanks to promotional pricing across the clothing, footwear and food sectors.
Shop prices have decelerated from 0.9 per cent to 0.4 per cent, according to the latest BRC-Nielsen Shop Price Index.
READ MORE:
- March shop price inflation at its highest in over 5 years
- April consumer confidence negative but stable despite Brexit uncertainty
- Subdued growth in March online retail sales
- March retail sales see strongest growth since August (ONS)
- High street footfall continues to battle wrath of “no splurge” culture
- Brexit uncertainty adversely affects March retail sales (BRC-Nielsen)
This places figures at above the 12-month average inflation of 0.1 per cent, but below the six-month average inflation of 0.5 per cent.
Non-food prices have dipped 0.6 per cent in April, compared to March when they remained flat, which places it above the 12-month average price decline of 0.8 per cent, but below the six-month average decrease of 0.3 per cent.
According to the index, April saw a general increase in promotional activity, as the number of food and non-food items on discount have more than doubled compared to last year and last month.
Meanwhile, the clothing and footwear sector experienced the highest increase in discounting, closely followed by DIY and fresh food.
“Consumers will be pleased to see a slowdown in the shop price growth for both food and other goods,” BRC chief executive Helen Dickinson said.
“This has been driven, in part, by the significant number of promotions that have taken place in April.
“There were more than double the number of product lines on discount this month compared to the previous, as retailers hope to recover ground after March’s disappointing sales figures.
“Intense competition may be benefiting consumers, but is cutting into the already slim margins of retailers.
“In order to be successful, retailers must invest in both their physical and digital offerings to ensure they can provide the customer experience consumers want.
“However, investment comes at a cost and unless the government acts to reform the broken business rates system we may find more store closures and job losses on the horizon.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
