Regardless of the business rate pressure, experts at NielsenIQ said the “underlying trend in prices will be downwards” over the next few months amid falling costs elsewhere and rising competition.
Clothes prices were down in February, the latest figures show, as retailers offered heavier promotions to tempt shoppers to spend.
It appeared to help halt a post-Christmas sales slump across the UK. Separate figures from the CBI Distributive Trades Survey revealed that sales across retailers were down around 7pc in February, compared to the 50pc fall in January.
The survey showed that retailers viewed their February sales as in line with average for the time of year, having been below the norm last month. Sales will, however, keep falling next month, the retailers said.
The tougher climate on the high street has piled pressure on some well-known names, including Superdry, where losses have been mounting. Founder Julian Dunkerton has been plotting a take-private deal after its share price collapsed.
Meanwhile, the owners of The Body Shop placed the UK chain into administration earlier this month, after warning about worsening trading conditions over the Christmas period.
A Treasury spokesman said: “Our decisive action helped to more than halve inflation last year, which is protecting businesses around the country from higher costs that they would otherwise have faced.
“We have taken one third of properties out of paying business rates altogether, and through a £4.3bn package protected bills for over one million business properties from inflation and provided a 1-year extension to our 75pc bills relief scheme for retail, hospitality and leisure.”
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
