Retail news round-up on March 5, 2014: Shop prices fall at fastest rate for seven years; app technology PowaTag is launched; and Boohoo.com sets flotation price
Shop prices fall at fastest rate for seven years
The Guardian reported that discounts on clothes and electrical goods and a slowdown in food inflation left prices in Britain’s shops falling at their fastest pace for at least seven years last month. According to figures from the British Retail Consortium and Nielsen, shop price deflation hit 1.4% in February from 1% in January.
That was the deepest rate of deflation since the BRC began producing these numbers in December 2006. Food prices were up an annual 1.1% in February, slower than inflation of 1.5% in January. But non-food prices were falling at a rate of 3.0% in February, after 2.7% in January.
App technology PowaTag officially unveiled
PowaTag, the app technology built by Dan Wagner’s Powa Technologies, has been officially unveiled ending months of speculation, The Telegraph reported. Wagner’s technology start-up has announced partnerships with more than 240 heavyweight brands, including Reebok, Adidas, Universal Music and Carrefour. PowaTag aims to reduce attrition rates, boost basket sizes and increase customer engagement. It does this across ecommerce, mobile and physical stores.
PowaTag is made up of several components. There’s a QR code for printed ads that enables instant product purchases. This QR code can also be featured on a price tags so that passing trade can buy products in the window when a store is closed, or have goods delivered when sizes are out of stock. PowaTag charges 25p per transaction, or 10 basis points, whichever is greater.
Boohoo.com sets flotation price
The Telegraph reported that shares in Boohoo.com are expected to be priced at 50p each in a stock market flotation that will value the online fashion retailer at more than £500m. The flotation will provide a windfall for its founders.
The performance of boohoo.com on its first day of trading will be closely watched, as the company is the latest in a host of retailers that have either already floated, or unveiled plans to sell shares on the London stock market.