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Retailers forced to offer seasonal discounts as food inflation hits record high

Retailers forced to offer seasonal discounts as food inflation hits record high
(Photo by Matthew Horwood/Getty Images)
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Winter looks increasingly bleak as UK food inflation soared to 12.4 per cent in November.

According to figures released by BRC today (30), food inflation accelerated strongly to 12.4 per cent in November, up from 11.6 per cent in October. This is above the 3-month average rate of 11.5 per cent. This is the highest inflation rate in the food category on record.


Fresh Food inflation strongly accelerated in November to 14.3 per cent, up from 13.3 per cent in October. This is above the 3-month average rate of 13.1 per cent. This is the highest inflation rate in the fresh food category on record.

Ambient Food inflation accelerated to 10.0 per cent in November, up from 9.4 per cent in October. This is above the 3-month average rate of 9.2 per cent. This is the fastest rate of increase in the ambient food category on record.

Shop Price annual inflation accelerated to 7.4 per cent in November, up from 6.6% in October. This is above the 3-month average rate of 6.5 per cent. This marks another record for shop price inflation since this index started in 2005.

Non-Food inflation accelerated to 4.8 per cent in November, up from 4.1 per cent in October. This is above the 3-month average rate of 4.0 per cent. Inflation remains rose to a fresh series’ high in this category.

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said that winter looks increasingly bleak as pressures on prices continue unabated.

"Food prices have continued to soar, especially for meat, eggs and dairy, which have been hit by rocketing energy costs, and rising costs of animal feed and transport. Coffee prices also shot up on last month as high input costs filtered through to price tags. Christmas gifting is also set to become more expensive than in previous years, with sports and recreation equipment seeing particularly high increases.

“While there are signs that cost pressures, and price rises, might start to ease in 2023, Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritise the essentials. Retailers continue to do all they can to support their customers and ensure everyone can enjoy the festive season by fixing prices of many essentials, offering discounts to vulnerable groups, raising pay for their own people, and expanding their value ranges," said Dinckinson.

Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said that with prices still rising, the cost of Christmas will be higher this year and shoppers will be managing their budgets more closely than at any time since the start of cost-of-living crisis.

"Retailers are now responding by offering seasonal savings and price cuts and will be hopeful of an uptick in shopper spend as we move into December."

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A whopping ninety-one per cent of respondents to a survey conducted by the Federation of Independent Retailers (the Fed) called for more police patrols on streets, while a similar number - 90 per cent - said that shoplifters should be handed harsher sentences.

Seven out of 10 respondents (72 per cent) said their stores had experienced shoplifting, break ins and damage to property, while they and their staff had been physically or verbally threatened.

Just under half of respondents (47 per cent) said they and their employees had been threatened or had suffered abuse and violence when asking for proof of age ahead of selling an age-restricted product.

Forty-four per cent reported that they and their staff had faced abuse or violence because they had refused to make a proxy sale – selling an age restricted product to a customer buying for a minor.

The results of the Fed’s survey came as new figures from the Office of National Statistics revealed that shoplifting was at a record high, with almost half a million offences recorded last year.

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“Inadequate responses from the police and a slap on the wrist for offenders means that shoplifting is soaring, and offenders are becoming more aggressive and brazen,” said Fed National President Mo Razzaq.

“From the responses we received, it is clear that real action is needed by police, by courts and by the government to stem the overwhelming tide of crime against retailers and their staff. Everyone deserves to feel safe at work and for their businesses to be protected against criminals.

“Fed members are also sending a clear message that one of the catalysts for verbal and physical abuse in stores is asking for proof of age before selling an age restricted product. If the government presses ahead with its plans to phase out smoking and vaping through a progressive ban to gradually end the sale of tobacco products across the country, independent retailers will be subject to even greater levels of violence, abuse and theft.”

Calling for action from the government and not just words, Mr Razzaq continued: “Without effective deterrent, criminals and opportunistic members of the public will continue to commit crimes.”

According to Ministry of Justice statistics, during the year to March 2024, 431 fines were handed out for retail theft under £100, while Home Office statistics for the same period show that 2,252 cautions were accepted for shoplifting.