UK Retailers Offer Bigger Discounts as Shopper Confidence Wanes

UK retailers are discounting heavily to lure shoppers amid weakening consumer confidence, underscoring the risks facing the sector as it braces for higher costs linked to the conflict in the Middle East.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — UK retailers are discounting heavily to lure shoppers amid weakening consumer confidence, underscoring the risks facing the sector as it braces for higher costs linked to the conflict in the Middle East.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Overall shop price inflation slowed to 1% year-on-year in April, the British Retail Consortium said Tuesday. Food prices rose 3.1% from a year earlier, compared with a 3.4% increase in March. Non-food prices by contrast fell 0.1%, returning to negative territory after growth of 0.1% in the year to March.“With weakening consumer confidence, retailers competed harder on price to stimulate more spring spending,” BRC Chief Executive Officer Helen Dickinson said. “While we’re yet to see the full force of the Middle East conflict feeding into consumer prices, it will not be long before it begins to.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Several retailers including fashion and homeware company Next Plc and grocer J Sainsbury Plc have warned about the fallout from the war in Iran, which has upended energy and shipping markets. That threatens to make imports more expensive at a time companies are already grappling with higher wages and UK taxes, posing a dilemma over whether to absorb or pass on costs to customers. Though the conflict is already spurring inflation in the UK, the impact has been largely limited to energy and motor fuel. Retailers are bracing for impact from higher fertilizer and commodity prices, and the UK’s Food and Drink Federation now expects food inflation to exceed 9% by the end of the year.“Increased fuel prices are already leading to higher inflation,” said Mike Watkins, head of retailer and business insight at NIQ, which compiled the data for the BRC. “We can expect a similar impact in the food and non-food supply chains in the months to come.”Prior to the war, overall UK inflation had been on track to fall to the Bank of England’s 2% target in the second quarter, clearing the way for further interest-rate cuts. Now, however, it’s expected to stay at around 3% and accelerate in the third quarter, raising the possibility of rate increases instead.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.