PARIS/MILAN ¨C A surge in energy prices since the start of the U.S.-Israeli war on Iran piles further pressure on the retail sector in Europe, which is already struggling with weak consumer demand and diminished spending power.
Shares in retailers, from Zara-owner Inditex to Britain¡¯s Marks & Spencer, fell on Monday as investors and analysts expected a knock-on impact from higher petrol and gas prices, even as the sector has barely recovered from the inflation cycle triggered by spiking gas prices after Russia¡¯s invasion of Ukraine.
Food manufacturers, supermarkets, and clothing retailers all hiked prices significantly in the wake of the last energy price shock in 2022, but the picture today is potentially worse with the eurozone and U.K. economies barely growing.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.