Shop Price Index
13 months of Shop Price Deflation
Helen Dickinson OBE, Chief Executive, British Retail Consortium:
“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. 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.
“Coronavirus has been a huge shock to the retail industry and coming on top of this, the threat of the UK leaving the EU without a trade deal is a real concern as it would lead to severe disruptions to supply chains, far beyond those experienced during lockdown, resulting in higher prices and reduced availability in shops. It is imperative that Government secures a deal with the EU or hard-pressed consumers will bear the cost.”
Mike Watkins, Head of Retailer and Business Insight, Nielsen:
"Shoppers have been buying more at Supermarkets during `lockdown`, in particular in Grocery and Frozen, but also in higher value categories such as Alcohol, where sales have increased over 30% in recent weeks. However, Ambient food inflation remains at +2.9% and lower in Fresh Foods as seasonal produce becomes available. Retailers and their suppliers continue to work together to cope with the unprecedented high demand due to the closure of most of the out of home and hospitality channels."