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    UK: Acceleration Of Clothing And Footwear Deflation Rate In May 2011

    2011/7/8 10:14:00 51

    British Clothing And Footwear

    Britain Retailer The Association announced the Nelson store price index for June 2011.


    British retail association Director general Stephen Robertson (StephenRobertson) said, "family." budget Under pressure. Actual disposable income fell by the largest in 34 years, but gasoline and Energy fee The main reason for the decrease of real disposable income is the increase plus low wages.


    "Shop" Price The rate of increase has lagged behind the broad consumer price index. Overall, the rise in store prices is driven by soaring world commodity prices, and the impact of sterling weakness on import costs and Value added tax They are higher than retailers' control. "


    "The latest round of competition in retail management shows that consumer spending is very weak," he said. Retailers use discounts and sacrifice profits to stimulate sales. Sales started earlier this year, especially clothing and footwear, which is cheaper than last year. "


    Retailers are fighting for shrinking household income. In 2010, household real incomes fell for the first time in 30 years. Retailers compete for family income through promotions and discounts. In clothing, footwear and electrical appliances sales, this practice is very obvious. From the beginning of the year, the prices of these two commodities decreased by 2.5% and 3.3% respectively.


    In May, the annual shrinkage rate of clothing and footwear commodities accelerated to 2.5% and 2%, the highest deflation rate since August 2010. Clothing accessories and baby clothing have the highest inflation rate. However, the deflation rate of men's and women's clothing and footwear has accelerated, which has offset the inflation rate of clothing accessories and baby clothing.


    Input cost pressure slowed, cotton prices fell 25% in the past 4 months, though still high. The acceleration of deflation in June was mainly due to the fact that sales promotion started earlier this year and retailers were trying to stimulate consumer demand. According to the recent PwC report, 70% of the stores sell through window displays, compared with 60% last year.


    From a month to year basis, the price in June increased by 0.1%, while in the first three months it continued to decline.

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