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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Reuters
16 minutes ago
- Reuters
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The Independent
17 minutes ago
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The Independent
17 minutes ago
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Premium Bonds prize checker: When is August's NS&I draw and how can I check if I've won?
Every month, savers have the chance to win big prizes as the Premium Bonds winning numbers are announced. There are now 24 million people taking part in the government-backed savings scheme, with more than £127bn banked. Premium bonds are an investment product from the National Savings and Investment (NS&I), which is owned by the government. Each month, millions of savers are entered into a prize draw to win cash prizes ranging from £25 to £1 million, with two millionaires made at every draw. Every £1 entered has a 22,000-to-one chance of winning. The minimum investment is £25, while the maximum is £50,000. These savings don't accrue interest as with regular bank accounts, but are put up against a random digital prize picker called 'Ernie' – the Electronic Random Number Indicator Equipment. The date of this month's draw is Friday 1 August. The results of this draw are available a day later and released by the NS&I here. What are the chances of winning? There are many premium bond winners every month, but the actual chance of winning remains fairly low. Most people will never win a prize, meaning their investment will stay the same. However, the scheme is also risk-free, meaning money won't be lost either. Analysis by money expert Martin Lewis found that the 'interest rate' on premium bonds accounts is 4 per cent when all winnings are considered – but notes most people won't see anything like this. Many savings accounts in the UK also offer a higher interest rate than this, which will be far more consistent. The distribution of prizes changes slightly every month. Here were the results in January 2025: £1 million x 2 £100,000 x 82 £50,000 x 163 £25,000 x 328 £10,000 x 818 £5,000 x 1,636 £1,000 x 17,163 £500 x 51,489 £100 x 1,987,844 £50 x 1,987,844 £25 x 1,803,871 How to check if you've won To check if you've won a prize on premium bonds, you can visit the NS&I checker on its website and enter your bond numbers. There is also an NS&I app which allows savers to check results on the go.
