The British Retail Consortium has warned that escalating geopolitical tensions in the Middle East could place further pressure on consumer spending and retail supply chains, with concerns extending across food, energy and household costs.
According to new polling commissioned by the organisation, 80% of consumers believe the conflict will increase food prices, while 73% expect higher prices for non-food products. The findings reflect growing uncertainty around inflation, energy costs and supply chain resilience within the UK retail sector.
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For furniture and interiors retailers, the concerns are particularly tied to rising logistics, manufacturing and energy costs, all of which continue to influence sourcing, production and distribution. Increased shipping and electricity prices are expected to impact the wider home and interiors supply chain over the coming months.
The BRC noted that retailers are already absorbing significant domestic cost increases linked to employment policies, packaging levies and energy-related charges. Industry representatives argue that these pressures are compounding existing operational challenges at a time when many businesses are navigating fragile consumer confidence and uneven demand across home-related categories.
The organisation is calling on the UK government to address several policy-related cost burdens, including business energy charges and packaging levies, which retailers say are contributing to long-term operational strain.
Helen Dickinson, Chief Executive of the British Retail Consortium, said retailers are working to keep prices affordable but warned that mounting costs across supply chains could eventually affect household spending.
The warning comes as the home and interiors sector continues to balance inflationary pressures with slower consumer demand, particularly across discretionary spending categories such as furniture, home improvement and décor.
More information:
BRC
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www.brc.org.uk
