Fashion sales in October have shown signs of recovery.
- The British Retail Consortium reported a decrease in shop price deflation to 0.8%.
- Non-food deflation remained unchanged at -2.1%, offering stability in retail.
- Food inflation reduced slightly, contributing to eased shop price pressures.
- Experts urge governmental action to maintain favourable consumer prices.
The latest figures from the British Retail Consortium (BRC) indicate that fashion sales in October have begun to recover, showing a slight positive shift. The BRC-NielsenIQ Shop Price Index documented a drop in overall shop price deflation to 0.8%, down from 0.6% in the prior month, hinting at an uptick in market conditions for retailers.
Non-food items maintained a steady deflation rate of -2.1% in October, similar to September’s figures, and below the three-month average rate of -1.9%. This stability within the non-food segment suggests that retailers are managing inventory and sales strategies effectively to prevent price volatility.
Meanwhile, food inflation slowed from 2.3% in September to 1.9% in October, a figure still exceeding the three-month average of 2.1%. This deceleration in food-related price increases is critical, as easing supply chain pressures contribute to broader economic stability.
Helen Dickinson, CEO of the BRC, noted, “October saw shop prices fall marginally further into deflation for the third consecutive month. With fashion sales finally turning a corner this autumn, prices edged up slightly for the first time since January as retailers started to unwind the heavy discounting seen over the past year.” Her remarks highlight the cautious optimism in the retail market.
The BRC has advocated for governmental intervention to maintain these positive trends. Specifically, they called for a ‘Retail Rates Corrector’ in the upcoming Budget, proposing a 20% reduction in business rates for retail properties. This move could help retailers offer competitive pricing and foster job security, while also attracting investment to the sector.
Mike Watkins, head of retailer and business insight at NielsenIQ, added perspective by highlighting eased inflationary pressures in the food supply chain. Despite these gains, the market faces ongoing challenges, particularly as consumers remain prudent in their spending amidst intensified competition from seasonal promotions in both food and non-food retail segments.
October’s data reflect a hopeful turning point for fashion retailers, with stakeholders calling for supportive measures to sustain this progress.
