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Poor weather and economic gloom continue to dampen retail prices Poor weather and economic gloom continue to dampen retail prices
(5 months later)
A combination of poor weather, supermarket price wars and the continuing economic gloom has led to price tags in high street stores rising at their slowest rate in three and a half years, according to the British Retail Consortium and research group Nielsen.A combination of poor weather, supermarket price wars and the continuing economic gloom has led to price tags in high street stores rising at their slowest rate in three and a half years, according to the British Retail Consortium and research group Nielsen.
Last month food prices fell 0.4% while non-food prices dropped 1.1% compared with March to levels last seen in November 2009.Last month food prices fell 0.4% while non-food prices dropped 1.1% compared with March to levels last seen in November 2009.
"Household finances are still under pressure, but it's clear that isn't coming from the shops," said Helen Dickinson, BRC director-general."Household finances are still under pressure, but it's clear that isn't coming from the shops," said Helen Dickinson, BRC director-general.
Fashion retailers and suppliers suffered in April due to a late flurry of snow and cold weather, which left clothes rails lined with summer dresses and T-shirts that remained unsold.Fashion retailers and suppliers suffered in April due to a late flurry of snow and cold weather, which left clothes rails lined with summer dresses and T-shirts that remained unsold.
Marks & Spencer suffered a quarterly fall of 3.8% in non-food sales and resorted to a series of one-day sales and online promotions in an attempt to shift extra stock, with other retailers following suit.Marks & Spencer suffered a quarterly fall of 3.8% in non-food sales and resorted to a series of one-day sales and online promotions in an attempt to shift extra stock, with other retailers following suit.
As a result prices on all clothing and footwear were down 2.5% compared with March, and down 4.7% on the same month last year.As a result prices on all clothing and footwear were down 2.5% compared with March, and down 4.7% on the same month last year.
DIY and gardening centres also suffered from the cold weather, with many gardeners delaying their purchases during the Easter weekend, which is seen as the busiest time of year for retailers such as B&Q and Homebase.DIY and gardening centres also suffered from the cold weather, with many gardeners delaying their purchases during the Easter weekend, which is seen as the busiest time of year for retailers such as B&Q and Homebase.
Hardware, gardening and DIY prices fell 0.7% on March, but were up by 0.2% on last year, following an Easter of heavy promotions.Hardware, gardening and DIY prices fell 0.7% on March, but were up by 0.2% on last year, following an Easter of heavy promotions.
Food prices did fall slightly on last month. However, they were up 2.9% on last year.Food prices did fall slightly on last month. However, they were up 2.9% on last year.
The recent falls are believed to be due to supermarket promotions and recent price wars.The recent falls are believed to be due to supermarket promotions and recent price wars.
It follows the launch of Tesco's price promise, which matches both branded and non-branded food against its rivals, although Sainsbury's has complained to the Advertising Standards Authority, claiming it is unfair.It follows the launch of Tesco's price promise, which matches both branded and non-branded food against its rivals, although Sainsbury's has complained to the Advertising Standards Authority, claiming it is unfair.
Mike Watkins, head of retailer and business insight at Nielsen, said: "This time last year food prices were on the increase during the washout of early summer 2012.Mike Watkins, head of retailer and business insight at Nielsen, said: "This time last year food prices were on the increase during the washout of early summer 2012.
"Retailers will now be looking to keep prices competitive over the next few weeks to keep whatever momentum there is in sales growth going, and for high street retailers this could require summer discounts to start sooner rather than later.""Retailers will now be looking to keep prices competitive over the next few weeks to keep whatever momentum there is in sales growth going, and for high street retailers this could require summer discounts to start sooner rather than later."
Another survey by Visa Europe found month-on-month consumer spending fell in April by 2.5%, following three successive months of growth, suggesting shoppers are spending more carefully and forcing retailers to offer more discounts.Another survey by Visa Europe found month-on-month consumer spending fell in April by 2.5%, following three successive months of growth, suggesting shoppers are spending more carefully and forcing retailers to offer more discounts.
Simon NevilleSimon Neville
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