UK retail: prices drop again to attract customers


Since the UK retail sector was heavily impacted because of the coronavirus, firms have been looking for new measures to be able to get back on their feet. One of the struggles is attracting customers to stores. To try to do so, high street merchants have decreased their prices again.

This was revealed by BRC-Nielsen. Its latest shop price index showed that rates dropped by 1.3 in July as non-food items decreased in value. Nonetheless, analysts advance that this represents a slowdown in deflation from June when prices fell by 1.6 per cent. According to Helen Dickinson, chief executive of the British Retail Consortium (BRC), this difference is a result of “a decrease in the number of promotions on some non-food products such as electricals and furniture amid ‘pent-up demand’ from customers”.

On the other hand, food inflation has remained steady at 1.5%. July is the third consecutive month which saw prices increase at the same rate. 

Experts advance that the fact that retail prices are decreasing is good news for customers. Hopefully, this will motivate them to visit stores and the high street. Moreover, the government is being urged to support retailers and landlords over rent costs and to take action to boost consumer demand.
Prices of non-foot items are decreasing

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