UK shop prices fall in April
Weaker consumer demand prompts discounting
May 8 2003
Prices on the UK high street declined slightly as a slackening in consumer demand saw retailers resort to increased discounting.
The British Retail Consortium’s monthly Shop Price Index recorded a slight fall of 0.17 per cent in April, compared with March 2003. The main trend was an increase in food prices countered by a fall in non-food prices.
The yearly trend showed a price decrease of 0.18 per cent compared with April 2002.
The BRC believes the effects of war and declining consumer confidence have affected spending, prompting retailers continue to compete through price cutting and discounting. The decline in tourism, for instance, is reflected by the decline in the price of a bottle of after sun lotion.
BRC director general, Bill Moyes, said: “Once again shop prices have fallen as retailers discount in the face of weakening consumer demand. This is further evidence of the pressures faced by the sector. In the short term there are real bargains for customers.
“In the longer term, the squeeze on margins means that the sector will not be able to create jobs and invest in innovation on anything like the scale of the last few years.”
