29 March 2024, 04:50
By Furniture News Jan 03, 2020

Heavy discounting prevails through Christmas

Shop prices fell by -0.4% in December (compared to -0.5% in November), according to the latest findings by BRC-Nielsen. This was below the 12-month average of 0.0%, but in line with the six-month average of -0.4%.  

Non-food prices fell -1.5% (compared to -1.6% in November).

BRC chief executive Helen Dickinson OBE says: “Shop prices continued to fall in December as receding inflationary pressures, weak consumer demand and intense competition combined to keep price increases at bay. 2019 has been a particularly challenging year, with historically weak sales growth. Food inflation was steady as pressures from the global market trickled down to the consumer, however, at +1.4% it was a modest increase compared to historic inflation rates. As non-food retailers competed for discretionary spend, they have felt the brunt of weak sales. It is no surprise that December non-food prices fell significantly below the 12-month average for the fifth consecutive month as retailers pushed discounts in one last attempt to entice Christmas shoppers."

Mike Watkins, head of retailer and business insight for Nielsen, adds: “The competition for the discretionary spend of shoppers intensified in December and discounts were deeper and began earlier, as retailers had to work even harder to keep customers shopping due to weak consumer demand. The continued deflation in non-food may have helped sales on the high street, however many supermarkets faced with weak volume growths reduced prices in the run-up to Christmas to give a short-term boost to sales." 

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