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Stores are cutting their prices in the run-up to Christmas amid a crisis on Britain’s main streets, according to a report.
Prices have fallen 1.8% in November compared to the previous year, and fashion and DIY retailers are more likely to have discounted their products, according to the BRC (British Retail Consortium) -Nielsen store price index.
Repressed by two closures this year, many stores have been left in a precarious financial position and are competing for the Christmas trade.
The fall in prices last month was driven by non-food products, which fell in price by 3.7% after a 2.7% drop in October.
Food prices were 1.3% higher in November than a year earlier, although store price inflation remained low.
Mike Watkins, Nielsen’s director of retail and business information, said this is because supermarkets were “competing for the holiday shopper’s wallet when seasonal food and beverage sales spiked in late November.”
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The collapse of the street giants Debenhams Y Arcadia this week it will have scared the chain stores even more.
Helen Dickinson, BRC CEO, said: “Those who closed during shutdown have lost billions in sales and many are now in a precarious financial position.
“The government should not subject these companies to a return to full obligation of commercial rates starting in April 2021, and should urgently consider extending the moratorium on debt compliance beyond January.
“Without such interventions, we will see countless more store closures and job losses, which will deepen the crisis on our main streets.”
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The blockade is a ‘blow to the body’ for companies
A separate report found that two-thirds of people plan to buy Christmas gifts at independent stores.
About 43% said this was because they wanted to support the community during the pandemic, according to the report by the British Association of Independent Retailers and Starling Bank.
A similar proportion (42%) wanted an original gift selection, while 25% found shopping in local stores more convenient.
The average person who chooses to buy from independent companies will spend around £ 119 on gifts.
