The British Retail Consortium’s chief executive has explained how consumers will bear the brunt of a no-deal, despite enjoying falling shop prices with retailers cutting prices.
The comments come as shop Prices fell by 1.6% in September, a steady rate of decline as in August.
This is below the 12-month average price decrease of 1.1%, but above the 6-month average price decrease of 1.7%, respectively.
Non-Food prices fell by 3.2% in September compared to a decline of 3.4% in August which is below the 12-month average price decline of 2.6%, but above the 6-month average price decline of 3.5%.
In response to the data, Helen Dickinson, the BRC’s chief exec, said: “Consumers can celebrate yet another month of falling shop prices, particularly in the Non-Food ranges such as clothing and footwear. Retailers are cutting prices in order to encourage further spending where sales are yet to pick up.”
Adding: “Retailers strive to provide the best value, quality goods, but their ability to do so, come 2021, is under threat. Without a zero-tariff deal with the EU, supermarkets will be subjected to £3.1 billion a year of tariffs on food and drink, which they will have little choice but to pass on to their customers as retail margins are so thin.
“Many non-food retailers will also face large tariff bills, and as a result, the total cost to the industry and its customers would be much higher. The Government must prioritise a tariff-free deal, otherwise hard-pressed consumers will bear the brunt of price increases.”