Period covered: April 19Published: May 01, 2019Read time: 1min

Shop Price Index

Shop price inflation eases as promotions rise

SHOP PRICE INFLATION EASES AS PROMOTIONS RISE

Helen Dickinson OBE, Chief Executive, British Retail Consortium: 

“Consumers will be pleased to see a slowdown in the Shop Price growth for both food and other goods. This has been driven, in part, by the significant number of promotions that have taken place in April. There were more than double the number of product lines on discount this month compared to the previous, as retailers hope to recover ground after March’s disappointing sales figures.

 “Intense competition may be benefiting consumers, but is cutting into the already slim margins of retailers. In order to be successful, retailers must invest in both their physical and digital offerings to ensure they can provide the customer experience consumers want. However, investment comes at a cost and unless the Government acts to reform the broken Business Rates system we may find more store closures and job losses on the horizon.“  

Mike Watkins, Head of Retailer and Business Insight, Nielsen:

"The slowdown in shop price inflation this month is welcome news for shoppers who are now facing rising households bills across energy, travel and entertainment. Supermarkets continue to battle for shopper spend by offering attractive price cuts as seasonal fresh foods become available and non food retailers, coping with weak demand, are keeping price points competitive. However, many households are still cautious about spending, so we anticipate promotions continuing over the summer months to help the momentum in retail sales which was kick started by the late Easter and some warm weather.”