The latest BRC-Nielsen Shop Price Index shows shop prices fell for the 13th month in a row in June as retailers tried to tempt shoppers to spend during the pandemic.
Overall prices were down 1.6% last month, although this was an easing from the 2.4% decrease in May.
Prices across non-food items fell by 3.4% in June compared to a hefty decline of 4.6% the month before.
Meanwhile, food inflation held steady at 1.5% with the increase in fresh food remaining at 0.5% and the ambient rate staying at 2.9%.
“Consumers have benefited as shop prices have fallen for the 13th consecutive month, however the situation for many retailers, such as those in clothing and footwear, remains very challenging,” said BRC chief executive Helen Dickinson.
“Sales have dropped significantly since mid-March and two-thirds of businesses are reporting turnover below pre-crisis levels, meaning there is a serious risk to jobs as a result. The government should focus on stimulating demand in the economy and restoring consumer confidence.”
NAM Implications:
- For ‘past 13 months’ read ‘next 13 months, minimum’…
- …and see if your business model can live with that.
- Meanwhile, after 14 weeks of lockdown, anticipating government’s ability to stimulate demand and restore consumer demand is a big ask…
