Essential reading for retailers and suppliers in the home improvement market

Weak consumer spending see retail prices decrease

Published: 2 September 2019 - Kiran Grewal

According to the British Retail Consortium (BRC), August Shop Prices fell by 0.4% compared to a 0.1% decrease in July. This is below the 12- and 6-month average price increases, both of 0.3%, and is the fastest rate of decline since June 2018.

Non-Food prices fell by 1.5% in August compared to July’s decrease of 1.2%. This is below the 12- and 6-month average price declines of 0.6 and 0.7%, respectively. It is the fastest rate of decline since June 2018.

Overall prices were pushed further into deflationary territory by Non-Food goods that saw prices decline at a faster pace in August. Out of the seven Non-Food categories, three were deflationary. Weak consumer spend and intense competition kept price increases well at bay, with many retailers using discounts, especially for basic items (which are oversampled in our index). Case in point, prices for five categories – DIY, Furniture, Clothing, Electricals and Other Non-Food, are below their August 2015 prices. 

 

Helen Dickinson OBE, chief executive of the British Retail Consortium commented: “Consumers were the real winners this month as prices fell at their fastest rate in over a year. Prices of non-food goods fell at a faster rate than both the previous month and the 12-month average, while food inflation eased slightly due to higher levels of discounting from supermarkets. 

“Weak consumer spending and stiff competition has kept prices down in the UK, however a disruptive no-deal Brexit, which would raise the cost of imported goods, could reverse this trend. In the interests of both consumers and retailers, the Government must redouble its efforts to find a workable agreement with the EU that would avoid a no deal scenario.”

Mike Watkins, head of retailer and business insight at Nielsen said: “August is often a difficult month for retailers made more challenging this year by unseasonable weather early in the month, and we have seen the return of vouchering by many supermarkets and some non-food retailers bringing forward end of season discounts to help drive sales. Consumers remain uncertain about when and where to spend but the good news is that any inflationary cost pressures that may be building in the food supply chain, have not yet reached shop prices.” 

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


Are we seeing a rise in consumers interested in smart home security?



Latest reader comments

re: Further Homebase closures ahead

Shaun Collorick
Cheltenham homebase has closing down signs outside, but not Gloucester homebase.... Yet!...

re: B&Q sales slide, as Screwfix decision to exit German market costs millions

B&Q bob
No surprises from us on the shopfloor management paralysed by fear of jobs and to weak to take chances so bumble around. Ranges boring, and ...

re: Further Homebase closures ahead

Miss l'a tesha gc Wilson
Please keep me updated regards all Store closures Thank you...

re: Graham Bell to head up B&Q as part of Kingfisher reshuffle

Peter Earl
I HOPE GRAHAM BELL THE NEW CEO OF B&Q GETS TO GRIPS OF THE COMPANY VERY SOON.MY WIFE WENT FROM SHADOXHURST TO GILLINGHAM TO GET SOME ...

re: Quick and easy wood treatment oil from Frogsuit

Helen
hi, I have some brand new teak garden furniture would the clear be suitable to keep the new look of the wood....

Most read stories