.jpg)
1 hour ago
3
Article content
(Bloomberg) — UK retailers are discounting heavily to lure shoppers amid weakening consumer confidence, underscoring the risks facing the sector as it braces for higher costs linked to the conflict in the Middle East.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Overall shop price inflation slowed to 1% year-on-year in April, the British Retail Consortium said Tuesday. Food prices rose 3.1% from a year earlier, compared with a 3.4% increase in March. Non-food prices by contrast fell 0.1%, returning to negative territory after growth of 0.1% in the year to March.
Article content
Article content
Article content
“With weakening consumer confidence, retailers competed harder on price to stimulate more spring spending,” BRC Chief Executive Officer Helen Dickinson said. “While we’re yet to see the full force of the Middle East conflict feeding into consumer prices, it will not be long before it begins to.”
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Several retailers including fashion and homeware company Next Plc and grocer J Sainsbury Plc have warned about the fallout from the war in Iran, which has upended energy and shipping markets. That threatens to make imports more expensive at a time companies are already grappling with higher wages and UK taxes, posing a dilemma over whether to absorb or pass on costs to customers.
Article content
Though the conflict is already spurring inflation in the UK, the impact has been largely limited to energy and motor fuel. Retailers are bracing for impact from higher fertilizer and commodity prices, and the UK’s Food and Drink Federation now expects food inflation to exceed 9% by the end of the year.
Article content
“Increased fuel prices are already leading to higher inflation,” said Mike Watkins, head of retailer and business insight at NIQ, which compiled the data for the BRC. “We can expect a similar impact in the food and non-food supply chains in the months to come.”
Article content
Prior to the war, overall UK inflation had been on track to fall to the Bank of England’s 2% target in the second quarter, clearing the way for further interest-rate cuts. Now, however, it’s expected to stay at around 3% and accelerate in the third quarter, raising the possibility of rate increases instead.
Article content
Advertisement 1
English (US)