Sainsbury’s warned that conflict in the Middle East will dampen consumer spending, pushing its underlying operating profit below market forecasts. The UK’s second-largest supermarket chain now expects earnings of £975mn to £1.075bn for the 12 months to February 2027, falling short of the roughly £1.1bn analysts predicted. This projection follows a 1.1 per cent profit decline to £1.025bn in the year to February 2026.

Rising employment costs and fierce grocery competition already pressured results, while trading at the Argos general merchandise unit reflected a subdued market. WHSmith also felt the strain as air travel disruption left like-for-like sales flat in the seven weeks to April 18. The travel retailer suspended its dividend to tackle debt following an accounting scandal that wiped roughly 40 per cent off its share price.

WHSmith forecast pre-tax profits of £90mn-£105mn for the current year, down from £108mn last year, assuming no immediate boost in consumer confidence but sufficient jet fuel for European airlines. The downbeat updates highlight a broader trend of consumers delaying travel and holiday bookings amid growing uncertainty over the war’s economic impact.