The latest figures from the British Retail Consortium show that shop prices have risen at their fastest pace in almost six years, up 0.4% annually, compared to 0.3% in December.
Business Growth Expert and Yomdel CEO, Andy Soloman, commented:
“Although a marginal increase on paper, the largest rate of shop price growth in almost six years was inevitable following the competition of the Christmas period, and such a notable spike so early in the year highlights the tough reality facing many retailers in 2019.
A Brexit backed fall in consumer sentiment, coupled with increasing pressure from the online space, has seen the bricks and mortar sector struggle to keep prices low in order to see out the year. However, despite this heavy discounting, the retail rot has continued to spread with even the most established names, such as Tesco, already announcing staff cuts are on their way. When facing such a tough economic outlook, a price increase is often the first course of action but it will only stem the tide temporarily.”