January sales cause average gardening and DIY prices to fall

Gardening, hardware and DIY prices fell 1.9 per cent in January against the same month in 2016 and 0.7 per cent against the previous month, according to British Retail Consortium/Nielsen figures.

  • Overall shop prices reported deflation of 1.7 per cent in January, an acceleration from the 1.4% per centfall in December.
  • Non-food deflation accelerated to 2.3 per cent in January, deeper than the 1.9 per cent decline in the previous month.
  • Food deflation accelerated to 0.8 per cent in January from the 0.7 per cent decline in December. This compares with a 0.7 per cent fall on a three-month basis.
  • Fresh Food deflation remained at 1.2 per cent for the third consecutive month.
  • Ambient Food moved back into deflationary territory after a marginal rise in December, falling 0.2 per cent in January.
  • -1.9 in January last year

British Retail Consortium chief executive Helen Dickinson said: "January bucked the monthly trend of an easing in shop price deflation, with prices down 1.7 per cent compared to January 2016; a larger year on year fall in shop prices than the 1.4 per cent fall in December. For now, consumers continue to benefit from falling shop prices year on year. However, fluctuations in the monthly figures belie an underlying trend of building cost pressures that are gradually feeding through from the fall in sterling combined with higher commodity prices. This will inevitably mean that we start to see a general upward trend in inflation over 2017.

"In fact month-on-month food prices were up, although the impact of this on inflationary pressure was offset by the discounting of excess stock by a number of non-food retailers after a tepid sales performance over the festive period.

"Retailers’ focus will be on protecting their customers from the effects of increasing input costs, but with the cost of doing business rising and margins and profits being squeezed, their efforts will require the support of public policies that help them keep prices low for shoppers. This means capping the annual uplifts in business rates and ensuring no new tariffs remains a core objective of the negotiations on exiting the EU."

Nielsen retailer and business insight head Mike Watkins said: "Consumer demand was perhaps better than expected at the end of last year and retailers are still managing to limit currency related cost increases being passed onto shoppers. This is helping to give some stability to the industry at the start of 2017. However, there is already inflationary pressure elsewhere in the economy and this will start to have an impact on the disposable income of households later in the year."

Book now for the Garden Retail Summit 2017 - the leading independent knowledge and networking event for executives. Taking place in London on 23rd February, this year's event will focus on growth, and include the opportunities and challenges of 'brexit', learnings from the latest garden centre developments - and will be opened with a keynote address from John Cleland, CEO, Dobbies.  For more details and tickets go to: www.gardenretailawards.com/summit


Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

Business Planning - Staff are your greatest asset

Business Planning - Staff are your greatest asset

An effective strategy to retain staff is the best way for any business to avoid a potential recruitment crisis, Neville Stein advises.

Why are small garden centre groups expanding?

Why are small garden centre groups expanding?

After Coolings bought a third site in Kent this October, what is driving garden centres to add extra locations to their offer?

Is targetting younger buyers a distraction for garden centres?

Is targetting younger buyers a distraction for garden centres?

Garden centres may be better off looking towards their traditional demographic than chasing young customers.


Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
Horticulture Jobs
More Horticulture Jobs

Horticulture Week Top 100 GARDEN CENTRES 2017

See our exclusive ranking of garden centre performance by annual turnover. 

Garden Centre Prices

Peter Seabrook

Inspiration and insight from travels around the horticultural world
 

Read more Peter Seabrook articles

Neville Stein

Business advice from Neville Stein, MD of business consultancy Ovation
 

Read latest articles