Commuters pass retail stores at Liverpool Street in the City of London, UK, on Monday, 25 October 2022. (Photo: Jose Sarmento Matos/Bloomberg) The British Retail Consortium said shop-price inflation accelerated to 6.6% in October, a record for the index which started 17 years ago, and up from 5.7% in September. Food price increases hit 11.6%, another record, with tea bags, milk and sugar all experiencing significant hikes.
Inflation has become impossible for shoppers to avoid, with rising bills across food, fuel and energy. Consumers are trying various methods to save money on their weekly shop, visiting rival retailers and choosing own-label brands as well as buying more wonky vegetables, frozen food and canned goods.
“The challenging economic conditions are significantly impacting consumer confidence and retail spend,” said Mike Watkins, head of retail and business insight at NielsenIQ, which produces the data for the BRC.
Rising prices are already deterring consumers from spending on non-essential items. Fast fashion chain Boohoo Group and high street bellwether Next both issued profit warnings in September while Asos is restructuring its business. Online furniture store Made.com Group is set to enter insolvency due to weaker demand and supply-chain difficulties.
“With Christmas fast approaching, customers are looking for any sign of respite,” said Helen Dickinson, BRC chief executive. “It is increasingly difficult for retailers to shoulder the ongoing supply chain pressures.” BM/DM