Prices of non-food products have dropped by their fastest rate in two years, according to the British Retail Consortium (BRC).
As retailers cut prices in the run-up to Christmas, non-food prices had fallen by an average of 2.4% compared with December 2007, while electrical goods were 5.1% lower than in the previous year.
The price slump means that there can be some good deals on high ticket purchases like , and home appliances like washing machines and fridge freezers.
Huge discounts mean price drops
BRC director general Stephen Robertson said that the dramatic fall in prices was down to retailers having to slash their prices, along with the reduction in VAT that took effect at the beginning of December 2008.
‘Goods in every category were much cheaper – both compared with the previous month and a year ago,’ he said.
Miller Bros latest victim of retail slump
The BRC figures will come as no surprise to retailers, as more of their counterparts disappear from our high street. The latest casualty is electrical retailer Miller Brothers, which went under two days ago.
The company’s website is no longer trading, but sale goods can still be purchased from its Doncaster store. Customers with outstanding orders can call a special helpline until the end of this month.
Meanwhile entertainment retailer Zavvi (formerly Virgin Megastores) has now shut 22 of its stores after falling into administration on Christmas Eve.
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