logo
Retail profit warnings more than double as high street pressures mount

Retail profit warnings more than double as high street pressures mount

The latest report from EY-Parthenon also revealed that overall profit warnings among UK-listed firms jumped by a fifth year-on-year in the second quarter – with a record proportion citing policy changes and geopolitical uncertainty as the leading factor.
The data showed that seven UK-listed retailers, including supermarkets, cut profit guidance between April and June.
Britain's retail sector has come under significant pressure since last autumn's Budget move to hike National Insurance Contributions (NICs) and the minimum wage, both taking effect in April.
But EY said the high street was also facing tough consumer spending challenges, with shoppers cutting back and focusing on value.
EY partner Silvia Rindone said the spike in retail warnings 'highlights both softening consumer demand and the deeper structural headwinds facing the sector'.
'Retailers we speak to tell us that falling sales are currently indicative of a longer-term shift, with consumers becoming more value-focused and less brand-loyal, which leaves cost-pressured retailers in a bind,' she said.
Tariff woes sparked by US President Donald Trump waging a trade war also featured heavily in the report, contributing to a rise in the number of alerts more widely across corporate plc.
The report found that the number of profit warnings issued by UK-listed companies rose by 20% to 59 in the second quarter compared with 49 a year ago.
The top factor was policy change and geopolitical uncertainty, cited in nearly half (46%) of all warnings – up from 4% a year earlier and the highest since the study was launched over 25 years ago.
Over one in three (34%) warnings flagged tariff-related impacts, such as weaker demand, supply chain disruption and volatility in currency movements.
The proportion of warnings to cite contract and order cancellations or delays remained at a record high of 40% in the quarter.
Jo Robinson, EY-Parthenon partner and turnaround and restructuring strategy leader, said: 'The latest profit warnings data reflects the scale of persistent uncertainty and how heavy it continues to weigh on UK businesses.
'While this uncertainty has been a recurring theme since mid-2024, it has intensified so far this year – driven largely by geopolitical tensions and policy shifts – compounding pressure on both earnings and forecasts.
'While the announcement of global tariffs has clearly played a part in amplifying uncertainty, they are just one factor among broader geopolitical and policy upheaval.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Slough buses get £900k to improve services
Slough buses get £900k to improve services

BBC News

time20 minutes ago

  • BBC News

Slough buses get £900k to improve services

More than £900,000 has been approved by a council to improve a town's bus is part of a £2.2m investment in Slough where the borough council was previously awarded £1.3m by the Department for Transport (DfT).The authority said the full investment would fund better access to the town centre and a bus interchange service to Wexham Park Hospital and Heathrow Airport.A report to the council's cabinet recommended councillors approve the capital spending, saying it would lead to "a borough for children and young people to thrive" and "a town where residents can live happier, safer and more independent lives". The funding would also be used to upgrade traffic signals, improve services at two bus stops where bus arrivals are poor and shorten journey times, the council - which investing a further £63,000 in the scheme - said. There would also be reduced ticket prices for passengers who take multiple bus services for their journey, with more evening and Sunday services Paul Kelly, cabinet member for highways and transport, told Monday's meeting: "These combined measures represent a forward-thinking and exciting programme of investment and public transport in Slough."Working with our colleagues as well as our vital key stakeholders such as Heathrow Airport, Great Western Railway (GWR) and neighbouring local authorities we hope to make a significant improvement for those who need sustainable transport in our borough."Zero-emission buses might be purchased using the capital funding, as set out in the report, but the council has not yet committed to the plans. You can follow BBC Berkshire on Facebook, X (Twitter), or Instagram.

Volunteers to reopen closed Chesterfield Canal visitor centre
Volunteers to reopen closed Chesterfield Canal visitor centre

BBC News

time22 minutes ago

  • BBC News

Volunteers to reopen closed Chesterfield Canal visitor centre

A visitor centre along Chesterfield Canal is to reopen two months after it was closed due to financial Lock Visitor Centre in Lockoford Lane recently acquired a new licence from Derbyshire County Council to resume operations and will open again on Saturday. The centre provides refreshments and information on the work and history of the canal, which stretches 46 miles from the River Trent in north Nottinghamshire to Chesterfield Canal Trust chair Peter Hardy said: "We have a dedicated group of volunteers who are going to come to our aid and man the building." Derbyshire County Council, which owns the building, announced in May it would be closing the information centre and café for financial reasons. Chesterfield Canal Trust was then successful in an application to lease the ground floor of the building to be solely run by volunteers. Mr Hardy said he was delighted to begin to get the centre back up and added: "We hope it will be successful and people will come to visit us."The centre will initially open between 10:00 to 15:00 on Tuesdays, Thursdays, Saturdays and Sundays but the trust aims for it to be open more often in future and offer more amenities.

Blind Plymouth business owner creates QR codes for menus
Blind Plymouth business owner creates QR codes for menus

BBC News

time22 minutes ago

  • BBC News

Blind Plymouth business owner creates QR codes for menus

A Devon business owner is hoping to make ordering at restaurants and cafés easier for blind people using QR Hulcoop - who has been blind since birth - set up his All Things Dotty business in 2023 to make Braille menus for venues across the 23-year-old from Plymouth's latest development has been to create QR codes which can give blind or visually-impaired diners an audio version of an eatery's menu so they do not have to rely on others to read out the Hulcoop has also launched a petition to ask the government to introduce legislation which would require all hospitality venues to have accessible menus. The QR codes are embossed with Braille, so visually-impaired customers can feel where the code is, scan it with their phone and listen to the menu at their Hulcoop said, in his experience, most visually impaired people - especially the younger generation - preferred to use added: "By scanning a QR code, it opens the restaurant up to a whole new world of people." Mr Hulcoop said when he asked some restaurant owners why they did not provide Braille or audio menus, their response was they do not think there was the demand. "My question to restaurants and cafes is how do you know whether you get a visually-impaired customer," he said."Not everybody uses a long cane or a guide dog, and people don't ask for an accessible menu because, let's face it, very, very few people had accessible menus available." The Boat House restaurant in Plymouth, which already offers customers Braille menus, is one of the first eateries to use a QR manager George Ford said: "I would say someone being visually-impaired or hearing-impaired is no different to having an allergen."We should always cater for it and make everyone feel as normal as possible."If you are visually-impaired and you are coming to a venue without a Braille menu or a large-print menu, you probably feel quite isolated."

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store