
Retail profit warnings more than double as high street pressures mount
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.'
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US-China talks to restart as hopes grow for trade war truce extension
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The National
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READ MORE: Man arrested for 'carrying a placard calling Donald Trump an offensive word' My summary on this, which I have learned through painful experience, is that there are usually five steps to this process, which are largely consistent with any narrative anyone might ever want to create. These are: You have a situation involving an unresolved stress that needs to be resolved as the story progresses The narrator of the story has a desire to resolve this issue, which they can explain, including by suggesting what outcome they want There is a problem or conflict that must be resolved before change can take place The necessary conditions to remove that obstacle to progress can be described The consequence is that the stress can be removed, and the person engaging with the story can understand how they might be better off as a result I am not claiming any great or novel insight here (pun intended). All I am relating is the foundation of the plot for just about any book, film or even newspaper column that you have ever read or watched. Of course, there are lots of ways in which variations on this theme can be created, but the fact is that, as life has taught me, resolving stress is pretty much what everything in life is about. It was undoubtedly the basis of my professional life during the 40 years I worked as a chartered accountant. Why is it worth relating these two tales? It is because understanding how narratives are created and resolved is crucial to the cause of Scottish independence, as well as to the broader political economy. The reason is quite simple: the hearts, souls and minds of those who will have to vote for independence will not be swayed by technicalities, however important they might be; nor are our relationships of power ever altered using financial or other data. Instead, it is stories that make and change our world. 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So, much as I think that technical issues around currency, taxation, and other such matters will have to be resolved before independence can happen, I am also of the opinion that the popular resolve to create an independent Scotland cannot be achieved without more storytelling. That storytelling has to build on genuine, and not fabricated, Scottish tradition. It has to emphasise that the reality of Scottish life can be improved. And what it needs to do is be clear that there is sufficient cohesion within Scotland for a strong and proud nation that does more than support its rugby, football and curling teams, but which wants to be independent as well. Emphasising Scottish modern culture will also be key. In that regard, I was heartened to see Scottish performers proudly displaying the Saltire at Glastonbury. That makes a difference, as does the championing of the cause by people such as actor David Tennant. 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The National
38 minutes ago
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