The number of profit warnings issued by listed retailers almost doubled year on year during the third quarter of 2025, new research has found.

Nine listed retailers cautioned over profit over the period, according to consultancy EY-Parthenon’s latest ‘Profit Warnings’ report, marking the highest rate since Q4 2023.

More than half of the warnings attributed declining consumer sentiment as a key factor behind the matter.

Across all listed companies, 64 businesses sent out profit warnings during the third quarter.

While a record 47% of the warnings attributed “policy change and geopolitical uncertainty” as the most prevalent factors, rising 17% year on year.

EY-Parthenon UK & I retail lead Silvia Rindone said: “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.”

She continued: “To remain competitive, retailers must not only adapt to shifting consumer preferences but also rethink cost structures and operational agility. 

“Innovation is no longer optional, it’s the key to resilience in a market defined by volatility.”

Consumer confidence slumped last month, according to the British Retail Consortium (BRC), amid fears over the state of the UK economy and the potential of higher taxes.

Expectations for the state of the overall economy dropped from -32 in August to -36 in September.

However, consumer confidence hit its highest level of the year in August, the GfK’s consumer confidence index found. 

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