Tariff Pressures Hit UK Retailers Hard: Majority Already Suffering Profit Losses

New Research: 71% of UK Retail Businesses Have Lost Profit Due to Tariffs, with Pricing Agility Now a Strategic Priority.

The UK retail sector is facing a growing crisis as shifting trade tariffs continue to disrupt pricing strategies and erode profit margins. New global research conducted by Enable, the leading AI-driven rebate and pricing management platform, reveals that 71% of UK retail businesses have already lost profits due to tariff impacts.

The report paints a stark picture of a sector under pressure:

• 90% of UK retailers are concerned about the impact of tariffs over the next 12 months
• Nearly a quarter (22%) are “extremely concerned”
• 81% plan to raise prices to cope with the added cost burden
• 65% say it takes weeks or months to implement pricing changes
• 92% admit poor pricing responsiveness puts profits further at risk

“With costs shifting unpredictably and 92% of UK retail businesses admitting their current pricing responsiveness risks further profit loss, pricing agility has become an essential survival skill,” says Andrew Butt, Founder and CEO of Enable.

Tariffs Now Touch Nearly a Third of Cost Base

The research found that 28% of the average UK retailer’s cost base is now exposed to tariffs, increasing vulnerability across the supply chain. Retailers are scrambling to adapt, but traditional pricing processes are falling short in a trade environment that can shift overnight.

While the majority of businesses plan to pass costs to customers via price increases, 42% will cut costs elsewhere, and another 42% are considering pulling back from high-tariff markets entirely.

Despite these strategies, confidence is low: 24% of retailers say they lack faith in their current pricing strategy, highlighting a significant gap between the perceived importance of pricing and actual pricing capability.

Customer Sensitivity and System Limitations Hamper Change

Beyond internal challenges, customer relationships are under strain. The report shows that:

• 87% of retailers are worried about how customers will respond to tariff-related price changes
• 93% are concerned pricing adjustments could damage long-term relationships
• System limitations were cited as the second biggest barrier to responsive pricing—just behind customer pushback

These challenges are prompting decisive action: 76% of businesses plan to invest in new pricing tools within the next year, and 71% have already reviewed or updated their pricing processes in response to market volatility.

Pricing Strategy Now a Competitive Advantage

As tariff volatility becomes a permanent feature of the global trade environment, Enable CEO Andrew Butt emphasises the importance of building resilience:

“Organisations that can rapidly assess tariff impacts, model response scenarios, and execute changes will be best positioned to protect margins and establish a competitive market advantage.”

To support this shift, Enable recently launched its Tariff Price Planner — a new solution that allows businesses to model the real-time impact of tariff changes and take faster, more informed pricing decisions.