UK retailers keep prices low despite rising costs amid coronavirus crisis

UK retailers who remain open during the coronavirus outbreak face rising costs from implementing social distancing measures, protective equipment and increasing import prices. Yet they continue to deliver great value on their products, according to research from the BRC and Nielsen.

This shows that shop prices fell by 1.7% in April compared to a 0.8% decrease in March. Non-food prices declined by 3.7% in April compared to a fall of 1.9% in March.

Food inflation accelerated to 1.8% in April, up from 1.1% in March. Fresh food inflation rose to 1.% in April (0.4% in March). And ambient food inflation increased to 3% in April (it was 2% in March).

“With the UK facing months of economic uncertainty and the prospect of rising job losses, many customers have cut right back on spending,” says Helen Dickinson, Chief Executive, British Retail Consortium.

“A speedy economic recovery is key to rebuilding consumer confidence, but businesses cannot do it alone. The government has demonstrated great support for the industry and they must be ready to take measures to revive consumer demand after lockdown has lifted.”

Mike Watkins, Head of Retailer and Business Insight, Nielsen, adds: “With lockdown effectively closing the high street, non-food retailers are reliant on online sales and prices have fallen as they look to sell stock.”

“Across the supermarkets, there has been a reduction of promotions to help availability as well as some supply chain constraints, which has led to a small increase in shop prices primarily in ambient foods. With such a significant disruption to shopping behaviour, the industry continues to do a marvellous job in helping to feed the nation in these difficult times.”