Retailers Offer Deals to Boost Consumer Confidence
- Shop prices fell at the fastest rate for nine months in December
- Overall shop prices dropped by 0.6% compared to last year’s December
- Retailers offered lower prices on non-food ranges for Christmas shoppers
- Non-food retailers kept prices low to stimulate spending amid wavering consumer confidence
- Food prices increased due to supply chain factors, but overall pricing remains competitive
Shop prices in December fell at their fastest rate for nine months, with overall shop prices dropping by 0.6% compared to the same month last year, according to the British Retail Consortium (BRC) and Nielsen Shop Price Index. This marks a significant change from November when deflation was at just 0.1%, the lowest since 2013. Helen Dickinson OBE, BRC’s chief executive, said, ‘December saw prices retreat deeper into deflationary territory.’ Retailers offered lower prices on many non-food items to cater to budget-conscious Christmas shoppers. These discounts provided some relief during the festive period when food costs were rising due to supply chain factors. Mike Watkins, head of Retailer and Business Insight at Nielsen, added that the SPI inflation rate is below other measures, indicating limited inflationary pressure from retailers. With consumer confidence wavering and unpredictable demand levels, non-food retailers kept prices low to stimulate spending, which likely impacted margins. Food prices edged up slightly due to supply chain factors, but overall pricing will remain competitive in 2018 as consumers face higher household bills.
Factuality Level: 9
Factuality Justification: The article provides accurate information from the British Retail Consortium (BRC) and Nielsen Shop Price Index, cites expert opinions, and discusses the impact on consumers without any personal perspective or exaggeration.
Noise Level: 4
Noise Justification: The article provides relevant information about shop prices falling at the fastest rate in nine months and offers insights from experts on the reasons behind this trend. It also mentions the impact on consumers during the festive period and expectations for the future. However, it could benefit from more detailed analysis or context on the broader economic implications of these trends.
Financial Relevance: Yes
Financial Markets Impacted: Retailers and consumer spending
Financial Rating Justification: The article discusses the decrease in shop prices, which can impact retailers’ profits and consumers’ purchasing behavior.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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