This week the latest BRC-Nielsen Shop Price Index was released, providing the latest look at the state of the UK retail sector.
Despite several months of stability with a steady rise in shop prices, October saw a dip of -0.2% annually. This drop increased to -1.1% for non-food items, highlighting the ever-tougher landscape UK retailers are facing to remain competitive – both against each other, and the online threat.
There was a 1.3% increase in food prices as consumers continue to turn to bricks and mortar outlets for their day-to-day food needs, but the figures are otherwise worrying for the sector as we approach the Christmas season.
Helen Dickinson, chief executive at the BRC, highlighted the additional troubles facing UK shops
“This comes at a particularly difficult time, with lower consumer demand, a weak pound, and rising public policy costs all putting pressure on retail margins.”
Our very own Business Growth Expert, Andy Soloman, was on hand to comment on the latest BRC figures.
“Despite a promising Autumn Budget for Britain’s small businesses, a fall in shop prices - particularly non-food items - was inevitable in the lead up to Christmas. Growing pressure from online-only retailers, as well as competition on the high street is forcing many to keep prices lower than they may like.
When this increased competition is coupled with the reduction in consumer activity as we prepare for the festive spending splurge later in the year, it makes for tough times ahead for many bricks and mortar outlets.
For those that can hold out until Christmas we will no doubt see shop prices spike following the holidays, but as with last year, it’s a sad fact that it’s likely we could see a number of casualties once the festive dust has settled.”