UK BRC Shop Price Index dropped -0.6% yoy in August. BRC Chief Executive Helen Dickinson OBE said: “While consumers may welcome lower prices, falling consumer demand is squeezing retailers’ already tight margins. With business costs continuing to rise – including business rates, wage bills, and pension costs – the high street risks more big name closures. Reform of business rates remains the most effective way Government can support the retail industry – and they should grasp the opportunity with both hands.”
Mike Watkins, Head of Retailer and Business Insight, Nielsen: “With consumers feeling uncertain about spending, retailers continue to focus on limiting price increases coming through the supply chain. Prices have fallen in non foods helped by seasonal reductions and many food retailers have introduced price cuts to help regain momentum after a challenging summer. Competition for discretionary spend will intensify across all channels as we head towards the end of the year and we anticipate more promotional savings for shoppers and inspiring media campaigns that help to drive incremental sales.”
