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Economy

Shop prices fall in April as non-essential retailers reopen

There was a shop price decrease of 1.3% over the period, compared to a drop of 2.4% in March, according to the BRC-Nielsen shop price index

UK shop prices continued to drop in April as non-essential retailers reopened after lockdown, according to the BRC-Nielsen shop price index.

In order to entice consumers, retailers decreased shop prices by 1.3% over the period, compared to the previous drop of 2.4% in March.

However, the fall in non-food prices drastically slowed down by 1.7% in April, a 4% drop from the previous month, with less businesses deciding to cut prices to lure in customers than before.

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Helen Dickinson OBE, chief executive of the British Retail Consortium (BRC), said: “Prices fell in April year-on-year for both Non-Food and Food. The decline in food prices was the result of fewer promotions in the comparison period, April 2020, as retailers tried to deter shoppers from stockpiling before and during the first lockdown.

“Non-Food deflation continued, with retailers discounting goods, particularly on last season’s stock as they made way for the latest products ahead of re-opening. However, some products, such as furniture saw prices generally rise due to the combination of high demand and disruption to global supply chains.”

Mike Watkins, head of retailer and business insight at NielsenIQ, said: “With the economy reopening we will start to see a rebalancing of consumer spend and it’s good news that there is still shop price deflation.

“Looking ahead, with many households uncertain about their personal finances, if external cost pressures start to feed through then shoppers may become more price sensitive over the next few months, as lifestyles are adapted to a new normal.”

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