The most up-to-date Shop Price Index from BRC-NielsenIQ shows that prices in stores fell even more in September. Shop price decline was 0.6% in September, down from 0.3% the previous month. This was the lowest rate since August 2021. Not food prices stayed in decline at -2.1% in September, which was lower than the -1.5% rate seen the previous month and the lowest rate seen since March 2021.
Key Insights from BRC
Helen Dickinson OBE, CEO of the BRC, said, “September was a good month for bargain hunters because big sales and tough competition pushed shop prices even further into deflation.” Prices in stores have gone down every month for seven of the last nine months, which means that inflation is at its lowest level in over three years. This was caused by items that weren’t food. As stores tried to get people to buy again, furniture and clothes saw the biggest drops in prices.
The Role of Furniture in Deflation
A big part of this trend has been furniture. Many customers are focused on home changes, so stores have reacted by lowering their prices. This is a big change, especially since costs have been going up in a lot of areas. In response to changing consumer habits, the furniture industry is giving discounts that not only bring in buyers but also boost overall retail spending.
Comparative Price Changes
| Category | September Price Change | Previous Month Price Change |
|---|---|---|
| Furniture | -2.1% | -1.5% |
| Clothing | -1.5% | -1.0% |
| Food | +0.2% | +0.1% |
| Non-food total | -2.1% | -1.5% |
| Shop Price Index | -0.6% | -0.3% |
Consumer Impact
The head of retailer and business insight at NielsenIQ, Mike Watkins, says, “With prices for things other than food going down, this will help shoppers plan their budgets for the rest of the year.” The small rise in food prices shows that prices in stores are settling closer to the long-term range. Still, over the next few weeks, stores will need to focus on increasing demand with good deals.
Factors Behind Deflation
Consumer Demand: Changing tastes in furniture have resulted in higher demand for discounted goods.
Retailers fight fiercely for market share, which has driven aggressive pricing policies. This competition drives reduced pricing in several non-food areas.
Economic Conditions: Retailers are driven to provide better deals in non-food categories to draw customers by more general economic causes including inflationary pressures in other sectors.
External Influences on Pricing
Although furniture pricing is showing good trends, outside variables could affect next store rates. Price hikes down the road could result from government-imposed regulatory costs, climate change, and continuous geopolitical tensions as well as from Retailers have to negotiate these obstacles while keeping competitive prices to keep consumer attention.
Future Trends in Furniture Pricing
Looking ahead, the furniture sector might keep changing its price policies in response to customer behavior and market environment. The present wave of price cuts could set a standard and inspire buyers to hold off on buying till after discounts. Retailers will have to strike a compromise between the expense challenges they deal with and the need of appealing pricing.
All things considered, the recent store price deflation brought on mostly by furniture discounts offers consumers wishing to make purchases in the next months a good situation. The furniture industry is a major contributor in determining customer buying behavior and general retail trends since aggressive pricing policies are in place. Although food inflation appears to be stabilizing, the non-food industry—especially furniture—will remain essential in giving consumers choices fit for their means.
Further Reading
For more detailed information on shop prices and trends, visit BRC-NielsenIQ.