Retailers in the UK are facing mounting financial pressure and are adjusting their guidance to deal with the added costs from increasing national insurance contributions and global economic uncertainty.

According to a report from EY-Parthenon, profit warnings from UK-listed companies surged by 20% annually and reached 59% in Q2 2025.

Additionally, seven retailers, with some supermarkets included, issued profit warnings between April and June, which is an increase from three in the year prior.

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.

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“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.”

UK-based retailers previously warned that the increased national insurance contribution fees and higher wages will affect companies financially.

In addition to the rising fees, retailers are also dealing with increasing pressure from tariffs and the current changes to international trade policies.

In particular, retailers expressed concern over geopolitical uncertainty, which was mentioned in 46% of profit warnings, a 4% rise compared to the year prior.

Other reasons cited that drove profit warnings were supply chain restructuring and current fluctuation due to the changing tariffs (34%) and delays and cancellations of orders.

The grocery sector in the UK may not be directly affected by tariffs, as there is minimal food imported from the US; however, global inflation may cause prices to rise.