Europe's struggling retail sector looks ill-prepared for new energy price shock

A surge in energy prices since the start of the U.S.-Israeli war on Iran is putting additional cost pressure on European retailers. This shock compounds already weak consumer demand and diminished spending power, increasing downside risk to retail sales and sector profitability.

Analysis

A surge in energy prices since the start of the U.S.-Israeli war on Iran is putting additional cost pressure on European retailers. This shock compounds already weak consumer demand and diminished spending power, increasing downside risk to retail sales and sector profitability.