Period covered: July 20Published: July 29, 2020Read time: 1min

Shop Price Index

Shop Price decline slows

Helen Dickinson OBE, Chief Executive, British Retail Consortium:

“Despite firms facing increasing costs, shop prices continued to fall in July, albeit at a reduced pace compared to the previous month. This was driven by a slower decline in Non-Food prices: sectors which saw a release of pent-up demand, such as electricals and furniture, saw fewer promotions. On the other hand, sectors where consumer spending remains weak are under significant pressure - for instance prices for health and beauty products barely moved.”

“Falling prices at tills is good news for shoppers, and will hopefully tempt more people onto our high streets and retail destinations. This remains a difficult time for the industry as a whole and Government could help to mitigate this by supporting retailers and landlords over rent costs and taking action to boost consumer demand. Without this, we may see many more store closures and subsequent job losses.”

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

“There was no further upwards pressure on shop prices in food during July and deflation continues across the non-food channels. Now that all of retail has re-opened for business, keeping prices stable will be important as it’s going to be difficult for retailers to second guess the strength of consumer spend with social distancing measures continuing, and consumer confidence still low.”