AI, technology and customer experience investment key as retail profit warnings rise in Q2
FTSE retailers issued five profit warnings in Q2 2026, up from three in the first quarter of the year, according to EY-Parthenon research. This makes 2026 only the third year since 2007 in which the sector has recorded more warnings in the second quarter compared to the first.
FTSE retailers issued a total of eight profit warnings in the first half of 2026, two more than the six recorded during the same period last year.
Silvia Rindone, EY-Parthenon UK&I Retail Lead, says: “Retailers entered 2026 with cautious optimism following a stronger festive trading period, but the rise in profit warnings in Q2 shows how quickly conditions can shift."
"The sector remains highly exposed to external shocks, and the impact of geopolitical disruption has compounded existing pressures on costs, supply chains and consumer confidence. While headline sales have shown some resilience, this has often been driven by promotions rather than underlying demand strength. Many retailers are navigating a difficult balancing act between protecting margins, remaining price competitive and continuing to invest in technology and customer experience."
“The growing divergence in performance across the sector is becoming more pronounced. Businesses able to fund investment in AI, other technology and customer experience are strengthening their competitive position, while others are struggling to keep pace. This is widening the gap between higher performing retailers and those facing ongoing financial pressure.
“Looking ahead, the outlook for the second half of the year is finely balanced. Supportive factors such as seasonal demand and policy developments may provide some uplift, but ongoing cost pressures, cautious consumers and geopolitical uncertainty mean execution will be critical in determining which retailers outperform and which continue to face challenges.”
2026 RTIH Innovation Awards
AI will be a key focus area at the 2026 RTIH Innovation Awards.
The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.
Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.
Check out our 2025 winners here.
Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.
In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”
“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”
He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”
Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.
