"Retailers are entering the golden quarter under immense pressure, with profit warnings at a two-year high and profit warnings citing weaker consumer sentiment at their highest since 2022. The EY-Parthenon data shows that over half of retail warnings stem from declining confidence, and this is compounded by rising wage and tax burdens. To remain competitive, retailers must not only adapt to shifting consumer preferences but also rethink cost structures and operational agility."
"In the third quarter of 2025, listed retailers issued nine profit warnings, the highest level since Q4 2023. Notably, over half (56%) of these warnings cited falling consumer sentiment as a key factor, underscoring growing concerns about weakened consumer confidence. The listed retail sector, which encompasses companies from the FTSE Retailers and FTSE Personal Care, Drug and Grocery Stores sectors, is particularly vulnerable as consumers become more selective in their spending."
Listed retailers issued nine profit warnings in Q3 2025, the highest since Q4 2023, with 56% citing falling consumer sentiment. Consumers are delaying purchases and shifting toward lower-cost options amid rising costs and changing preferences. Companies in Consumer Discretionary and Consumer Staples reported 24 warnings in Q3, the most since the same period last year. One in five of the 64 total Q3 profit warnings cited weaker consumer confidence, the highest proportion since 2022. Rising wage and tax burdens are compounding the pressure, requiring retailers to adjust cost structures, increase operational agility, and pursue innovation to remain resilient.
Read at London Business News | Londonlovesbusiness.com
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