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Shop prices continue to fall, but Brexit concerns mount


Shop prices continue to fall, but Brexit concerns mount

Shop prices in the UK fell by 1.6 percent in September compared to
August as retailers attempted to woo shoppers back into stores, new data
reveals.

That’s below the 12-month average price decrease of 1.1 percent, but
above the six-month average price drop of 1.7 percent, according to the
latest BRC-Nielsen Shop Price Index. Non-food prices fell 3.2 percent in
September compared to a fall of 3.4 percent in August.

But while shop prices may be falling, The BRC warned that a potential
no-deal Brexit outcome could lead to higher prices on the horizon.

“Consumers can celebrate yet another month of falling shop prices,
particularly in the Non-Food ranges such as clothing and footwear.
Retailers are cutting prices in order to encourage further spending where
sales are yet to pick up,” BRC CEO Helen Dickinson said.

“Retailers strive to provide the best value, quality goods, but their
ability to do so, come 2021, is under threat. Without a zero-tariff deal
with the EU, supermarkets will be subjected to 3.1 billion pounds a year of
tariffs on food and drink, which they will have little choice but to pass
on to their customers as retail margins are so thin.

“Many non-food retailers will also face large tariff bills, and as a
result, the total cost to the industry and its customers would be much
higher. The Government must prioritise a tariff-free deal, otherwise
hard-pressed consumers will bear the brunt of price increases.”

Photo credit: FashionUnited



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