Fashion prices on the cusp of rising as retailers kick off mid-season sales

London - UK shop prices are said to be on the edge of increasing according to the British Retail Consortium, as retailers struggle to balance the higher import costs.

Shop prices declined by the smallest amount recorded over the last four years in September, falling a mere 0.1 percent in comparison to the 0.3 percent year on year drop in August, according to new data from the BRC. Non-food prices, which includes apparel and footwear, declined 1.5 percent in September, down from 1.3 percent in August as retailers began introducing mid-season sales and discounting.

“Overall shop price deflation reached an all-time low in September with prices now teetering on the edge of inflation,” said Helen Dickinson, BRC chief executive. “Meanwhile retailers’ efforts to shield shoppers from the impact of higher import prices of basic non-food items are holding out for now."

Fashion prices likely to increase across the UK, warns the BRC

"However, as more non-food retailers’ hedging facilities come to an end this autumn, and as public policy costs mushroom, consumers are likely to start feeling an additional pinch on these products.”

Fashion retailers across the nation have already begun offering high mid-season discounting, in the run-up to what is anticipated to be another difficult Christmas trading period. Retailers including Debenhams, House of Fraser, Topshop, M&S and Asos have started offering discount of up to 50 percent, while others such as River Island and Dorothy Perkins have kicked off their autumn sales with 30 percent off.

“The uncertainty around the buoyancy of consumer spend has meant that non-food retailers are keeping price increases to a minimum to help maintain sales growth,” added Mike Watkins, head of retailer and business insight at Nielsen.

“The good news is that inflation is expected to peak over the next few months, and, with consumers still uncertain about when and where to spend, we expect competition for discretionary spend to intensify as we head towards the end of the year with more promotional savings for shoppers across all channels.”

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