UK retail businesses state they have already lost profits due to tariffs

Nearly three-quarters (71 percent) of UK retail businesses have already lost profits due to tariff impacts, according to new research conducted by Enable, the leading AI-driven rebate and pricing management platform.

The global research of senior business leaders reveals that tariff volatility has become a critical threat to business profitability, with 90 percent of UK retailers fearing tariff impact over the next 12 months, with nearly a quarter (22 percent) 'extremely concerned'.

The findings add that there is a dangerous gap between the speed of tariff changes and businesses' ability to respond, with 81 percent of companies planning to increase prices to offset tariff impacts, while 65 percent admit it takes weeks or months to implement price changes.

Beyond raising prices as their primary response to tariff pressures, 42 percent of companies said they will reduce costs elsewhere, and 42 percent are considering scaling back or withdrawing from high-tariff markets entirely.

Andrew Butt, founder and chief executive of Enable, said in a statement: "With costs shifting unpredictably and 92 percent of UK retail businesses admitting their current pricing responsiveness risks further profit loss, pricing agility has become an essential survival skill.

“The lag between tariff updates and implementing price changes creates a window where competitors with faster pricing capabilities can capture significant market advantage.”