Skip to content
Search

Latest Stories

Shop prices experience first monthly fall in two years amid big discounts

Clothing and footwear witnessed substantial price reductions, as retailers launched bigger discounts to encourage shoppers to invest in summer outfits

Shop prices experience first monthly fall in two years amid big discounts

UK's major retailers reported the first monthly decline in shop prices in two years in July, as they offered significant discounts to attract customers during the unseasonably wet weather.

The British Retail Consortium (BRC) revealed that shop prices dropped by 0.1% compared to June.


Additionally, the annual shop price inflation rate, compiled in collaboration with NielsenIQ, decreased to its lowest level of the year, reaching 7.6% last month, down from 8.4% in June, The Guardian reported.

Clothing and footwear witnessed substantial price reductions, as retailers launched bigger discounts to encourage shoppers to invest in summer outfits despite the heavy rainfall and floods across much of the country.

Moreover, food price inflation also slowed in July, reaching its lowest rate of 2023, thanks to decreased costs of staple items like oils, fats, fish, and breakfast cereals.

This helped alleviate some financial pressure on cash-strapped consumers.

The annual price growth for food products fell for the third consecutive month to 13.4%, lower than June's 14.6% figure and the lowest since December last year.

While the July shop price figures provide some optimism, the BRC has issued a warning that retailers might encounter rising input prices in the coming months, particularly for food, due to international events.

Recent global food commodity price increases, particularly for wheat and corn, were influenced by Russia's decision to terminate the Black Sea grain deal, affecting Ukrainian cereals reaching world markets.

Furthermore, rice prices rose after India banned exports of non-basmati white rice in an effort to control domestic inflation following heavy rain's impact on domestic crops.

Helen Dickinson, the chief executive of the BRC, highlighted that additional supply chain issues may lead to increased input costs for retailers in the future.

She emphasised that food prices are expected to fall at a slower rate compared to other goods.

To address this situation, Dickinson urged the government to freeze business rates from April next year to avoid adding an extra £400 million of pressure on prices.

Though the retail industry, particularly food retailers, has faced pressure due to the rising cost of living, overall price rises appear to be slowing down.

The UK's annual inflation rate declined more than expected in June to 7.9%, primarily driven by a significant drop in petrol costs.

The Office for National Statistics reported the first larger-than-expected fall in inflation since the beginning of the year, leading to improved forecasts on interest rate hikes by the Bank of England for the near future.

Mike Watkins, the head of retailer and business insight at NielsenIQ, suggests that discretionary consumer spending is expected to rise because of the summer holidays and the improving inflation outlook.

However, shoppers are adapting their strategies, opting to shop at different retailers, purchasing lower-priced items, delaying spending, or making purchases during promotions. This consumer behaviour is likely to continue, he said.

More For You

single-use vapes-iStock

Analysis by Material Focus estimates that 8.2 million vapes are discarded or littered each week in the UK—equivalent to 13 every second. (Representational image: iStock)

iStock

Shops told to clear single-use vapes before ban starts on June 1

SHOPS across the UK have until 1 June 2025 to sell off remaining stocks of single-use vapes before a nationwide ban comes into force.

The legislation, confirmed last year, follows a government consultation that showed strong support for restricting their sale and supply.

Keep ReadingShow less
Trump’s Promise: TikTok Deal Before April 5 to Avoid Ban

This is not the first time that TikTok has been under scrutiny in the United States

Getty

Trump promises TikTok deal before April 5 to prevent ban

As the clock ticks towards the April 5 deadline, the future of TikTok in the United States remains uncertain, with President Donald Trump promising that a deal to resolve the app's ongoing issues will be struck before the deadline. The central issue at hand is whether TikTok's parent company, ByteDance, will be forced to divest the popular social media platform or face a ban in the U.S.

In a statement made aboard Air Force One late on Sunday, Trump confirmed that there was "tremendous interest" from potential buyers looking to acquire TikTok. He expressed his desire for the platform to "remain alive" and emphasized that multiple buyers were keen on striking a deal, suggesting that a solution would be reached before the deadline.

Keep ReadingShow less
Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less
Starmer-Trump-Getty

Trump has suggested the possibility of a 'great' trade deal that could help the UK mitigate the impact of tariffs he has pledged to introduce. (Photo: Getty Images)

Starmer, Trump talk trade deal progress in 'productive' discussion

KEIR STARMER and Donald Trump spoke on Sunday about ongoing UK-US trade negotiations, with Downing Street describing the talks as "productive."

Since leaving the European Union, the UK has been working to secure a trade agreement with the United States. Successive British governments have pursued a deal, but it has remained elusive.

Keep ReadingShow less