Clothing and footwear deflation deepens

Clothing and footwear deflation shot up during February, reaching their deepest levels since the BRC-Nielsen study began in December 2006.

The latest BRC-Nielsen Shop Price Index found that deflation in clothing and footwear reached 12% in February, with children’s and women’s clothing driving the rate downwards.

It found that all categories in clothing and footwear have experienced deflation for six consecutive months. Discounting was a key driver of sales within this category, with a number of retailers using targeted events to entice consumers to spend.

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Overall shop prices reported deflation for the tenth consecutive month in February, accelerating to 1.4% from 1% in January. Non-food reported annual deflation of 3% in February from 2.7% in January, the lowest ever recorded.

“This is the fastest fall seen in prices which are 1.4 per cent down overall in February. It is also the longest sustained period of price decreases we have witnessed, now ten months in a row. There are especially good deals available at the moment in clothing, electricals, books and stationery,” said BRC director general Helen Dickinson.

“Many of the larger food retailers have been looking closely at their investment in promotions and price cuts, suggesting competition could intensify further. This should mean consumer price inflation remains at low levels in the coming months. It is clear that retailers’ hard work to keep prices low for UK consumers is having considerable success.”

 

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