Published on January 30th, 2020 | by The GC Team0
Non-food responsible for January shop price decline
Pressure on prices in the non-food sector of retail led to overall shop prices falling 0.3% in January compared to a 0.4% decrease in December.
The figure is below the 12-month average decline of 0.0% and above the 6-month average of 0.5%, according to data from the British Retail Consortium and Nielsen.
While food inflation accelerated to 1.6% in the first month of the year, non-food prices fell 1.5% – the same rate of decline as in December – prompting the BRC’s Chief Executive Helen Dickinson to assert that “shoppers will cheer”.
The figures for non-food represent the continuation of a long-term trend.
Mike Watkins, Head of Retailer and Business Insight at Nielsen, put the sector’s plight down to no inflationary pressure coming from the high street as shoppers remain nervous about spending. Hence, discounting continues for many non-food retailers, he added.
Whilst promotions in Supermarkets returned to more normal levels after Christmas, Watkins said the non-food sector “remains embattled with fierce price competition which looks set to continue.”