High street clothes retailer Crew Clothing has warned of a potential significant slowdown in consumer confidence, following a period where its profit stalled. The company is preparing for a possible decrease in spending, citing inflation fears stemming from the Iran war and the tightening of shoppers' budgets.
In 2025, Crew Clothing's pre-tax profit remained flat at £25.5m, even as its turnover increased by a fifth to £151m. The firm's cost of sales also rose by eight per cent, reaching £44m.
The retailer noted that its website performed better than its physical stores last year, with online sales jumping by 30 per cent. This compares to a 21 per cent growth in its high street business.
Crew Clothing's warning on consumer confidence comes as the retail industry is reportedly increasing pressure on the government to support high street businesses in the upcoming Budget. Retailers have urged the government to reverse recent increases to employer national insurance contributions and the minimum wage, suggesting they would hire more young people if employment costs decreased.