Shop prices drop on back of summer clothing sales

Shop prices
Non-food prices dropped
// The fall in shop prices increased in July
// Non-food prices dropped by 1.8% year on year between July 1 and 7
// Overall shop prices, including food, fell by 1.2% year on year

New research has found that the fall in shop prices increased in July as discounting continued to be the preferred way of shopping.

Non-food prices dropped by 1.8 per cent year on year between July 1 and 7, compared with a decline of one per cent in June.

This is below both the 12-month average non-food price drop of 2.8 per cent and the last six-month average decline of 2.2 per cent, according to the BRC-Nielsen Shop Price Index.

READ MORE: July retail sales growth slows down, but still strong, at 23%

Overall shop prices, including food, fell by 1.2 per cent year on year during the period, compared with June’s decrease of 0.7 per cent.

This was less than the 12-month average price decrease of 1.6 per cent and the six-month average of 1.4 per cent.

“UK consumers will be pleased to see another month of falling prices at the checkout,” BRC chief executive Helen Dickinson said.

“Annual prices in July fell at a faster rate than the previous month because of fierce competition between supermarkets keeping food prices low, and the steeper fall in non-food prices.

“With the reopening of some holiday destinations and other recreational activities, consumers broadened their spending to include more leisure and travel.

“In response, non-food retailers, particular fashion businesses, have been working hard to keep consumer appetite alive with summer Sales.

“Unfortunately for consumers, low prices may not last forever. Recently, retailers have faced huge cost pressures as a result of rising costs of shipping, haulage and petrol, as well as frictions from exiting the European Union.

“The additional paperwork and physical checks on EU imports in October and January may push prices up in the long term.

“Government should do all it can to minimise the impact on consumers by reducing any further frictions and costly delays where it can.”

Click here to sign up to Retail Gazette’s free daily email newsletter


Please enter your comment!
Please enter your name here