It is not fuel and energy prices alone denting consumer confidence. Next<\/a> CEO Lord Simon Wolfson<\/a> warned last month that clothing prices could increase by between 4% and 10% by the autumn if the war persists, while Tesco<\/a> boss Ken Murphy increased the width of its guidance for the 2026\/27 financial year to reflect the uncertainty, warning it will \u201cmuch depend upon the duration of the conflict\u201d.<\/p>\n UK-listed parent-and-baby retailer Mothercare\u00a0<\/a>also flagged difficulty in forecasting amid uncertainty<\/a>, stating that \u201cany longer-term impact upon supply chain remains unclear at this stage\u201d.<\/p>\n This ambiguity, coupled with persistent cost of living pressures and imminent stock availability issues if the conflict continues, could continue to be detrimental for fashion retail.<\/p>\n Weekly Europe Brent crude spot price ($\/barrel) Source: US Energy Information Administration (EIA)<\/p>\n\t <\/p><\/p><\/div>\n However, retail leaders tell Drapers they are optimistic that the impact could be limited if the conflict comes to a halt in the near term. Despite this, the overwhelming feeling is that the longer the war continues, the more damaging this will be for the sector.<\/p>\n \u201cIf we stop this imminently, we should be at limited risk and I would like to think we wouldn\u2019t have to put our prices up,\u201d one fashion and lifestyle retail CEO says.<\/p>\n \u201cBut if it continues for another month or even six weeks, things really will have to start moving. Across the board, people will have to go back and look at prices.\u201d<\/p>\n \u201cThe longer this goes on, the higher the impact is and the more severe the impact can be on consumer confidence,\u201d warned Danny Brown, CFO and COO at premium womenswear brand Joseph, speaking at Drapers Supply Chain Summit<\/a> on 22 April. He said the business has formed an internal \u201cIran crisis team\u201d to assess the implications and attempt to mitigate them.<\/p>\n Joseph has had to switch all its sea freight to air, something Brown says has resulted in \u201cquite a considerable increase in cost.<\/p>\n \u201cGiven that this is our second collection under our new creative director and the first fashion show, there is no way we can risk not having that product in,\u201d he adds.<\/p>\n \u201cIt is about making assumption that this will go on for a while,\u201d says Albaray<\/a> chief commercial officer Kirstie Di Stazio, also speaking at the conference.<\/a> \u201cWith planning and analysis, it is about doing the best you can to get a plan in place and stay agile [but] I think it will continue for a while without a doubt.\u201d<\/p>\n One of the most immediate impacts has been surging freight costs, which fashion retailers tell Drapers are up by between 30% and 40% per container, across both air and sea.<\/p>\n While freight costs have risen, the fashion and lifestyle retail CEO says they remain \u201cmanageable to date\u201d.<\/p>\n \u201cWe have seen worse [previously],\u201d he says. \u201cI would imagine the homeware retailers or those with bulkier stock are feeling a greater impact.\u201d<\/p>\n One footwear retail CEO echoes this: \u201cWe have started to see some fuel surcharges from the freight forwarders but at this stage, they are not crazy. They will increase unless oil supplies start to normalise and if the oil prices continue to rise, it will be a different story.\u201d<\/p>\n Despite this, Sosandar<\/a> head of sourcing Duncan Crewe<\/a> says some shipments have been arriving a month behind schedule, and that any freight that was previously on the ocean has now been moved to the air.<\/p>\n \u201cEveryone is in the same boat, I don\u2019t see that anyone has a magic wand to make it go away,\u201d he admits.<\/p>\n Mamas & Papas<\/a> interim CEO and COO Sarah Ashby<\/a> also emphasises that the shift to alternatives to freight has been the toughest challenge so far.<\/p>\n \u201cThe most significant challenge we are currently facing is the movement of inbound goods into the region, both in terms of capacity constraints and escalating costs,\u201d Ashby tells Drapers.<\/p>\n \u201cAl Tayer [Mamas & Papas franchise partner] has explored all available alternatives, however options remain limited across both sea and air freight.\u201d<\/p>\n \u201cAlthough UK routing and freight costs remain stable for now, cost price inflation and subsequent retail price increases appear inevitable,\u201d she adds.<\/p>\n Other businesses are reaping the rewards of previous decisions to nearshore, with many having opted to do in response to the Red Sea shipping crisis,<\/a> which began in 2023 and continued into last year.<\/p>\n \u201cIt highlights the value of near shore sourcing,\u201d the founder of one womenswear brand says, adding that his business relies on locations including Morocco and Turkey.<\/p>\n Another pressing concern is the rise in raw material costs<\/a> linked to the escalating conflict. Suppliers speaking to Drapers say some textile costs have risen by 10%-15% on average since the strikes began, with synthetic fibres, including polyester, having seen the sharpest increases due to their direct link to oil prices.<\/p>\n \u201cSynthetic prices are rising imminently, and this is particularly impacting what we are buying now for spring\/summer 27,\u201d one fashion retail CEO notes.<\/p>\n And despite fashion retailers having so far absorbing the costs, as factory prices edge up, eventual cost increases for consumers are inevitable.<\/p>\n \u201cRunning factories is a fear for suppliers,\u201d says Nobody\u2019s Child<\/a> sustainability lead Philippa Grogan<\/a>. \u201cLots of costs are going up teamed with the uncertainty.\u201d<\/p>\n \u201cWe are starting to see the raw materials creep up, starting with packaging and we will start to see it happening with yarns, polyester and viscose,\u201d adds Sosandar\u2019s Crewe.<\/p>\n Fashion retailers are united in the opinion that the impact is well over twofold: \u201cStock has been delayed coming into the UK and the price of containers is going up,\u201d says the executive of one outdoor fashion brand.<\/p>\n He reports cost increases on fabric and production, alongside rises in energy costs and running a production line.<\/p>\n Despite the challenges behind the scenes, Ashby hails the \u201cresilient\u201d consumer sentiment but flagged the notable dip in footfall to stores across the GCC (Gulf Corporation Council) region.<\/p>\n \u201cWe have seen a notable uplift in online sales as several stores have experienced materially lower footfall,\u201d she explains.<\/p>\n This is echoed by one fashion marketplace executive: \u201cUK retail is already difficult, so increased cost of goods will hit consumer confidence and means reduced store visits.<\/p>\n \u201cThis is leading to lower high street footfall and a shift towards online browsing, but not necessarily conversion.\u201d<\/p>\n Brown adds that Joseph\u2019s stores in both London and Paris have experienced a direct impact on footfall, particularly international customers from the Middle East.<\/p>\n Primark<\/a>, however, has showed no signs of slowing its expansion in the region, having powered on with openings in Dubai<\/a> in March and April. The retailer noted the continuation of \u201cday-to-day life\u201d following its openings, despite flagging that \u201ccareful consideration of the current situation\u201d was made before opening.<\/p>\n Nonetheless, the depth of disruption to supply chains, and for those operating in the region, remains unknown. Retailers tell Drapers they could not yet predict the long-term impact but that their biggest concern is consumer confidence.<\/p>\n \u201cThere is an inevitable structural shift towards a higher cost base and therefore price sensitivity among consumers,\u201d says the marketplace executive. \u201cAs well as changes to global demand mix long term.\u201d<\/p>\n \u201cWe are discussing the next season\u2019s products now but with current higher costs in mind. Really, do things [prices] ever come down?,\u201d questions the footwear retail CEO.<\/p>\n While cost increases, delays and disruption are inevitable, fashion retailers must remain agile, reactive and focused on delivering product to a cautious consumer in an unpredictable environment.<\/p>\n","protected":false},"excerpt":{"rendered":" Soaring logistics costs, shipping delays, raw material price hikes and shaky consumer demand \u2013 the ramifications of the US-Israel war with Iran, which began on 28 February, have already been profound. And while fashion retail executives tell Drapers the impact is yet to fully filter through to consumers, particularly in terms of price increases, some …<\/p>\n","protected":false},"author":126698,"featured_media":462591,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"ep_exclude_from_search":false,"footnotes":""},"categories":[972,962,995],"tags":[],"class_list":["post-462041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-news","category-supply-chain","editorial-supply-chain"],"yoast_head":"\n![\"\"](\"https:\/\/cdn.rt.emap.com\/wp-content\/uploads\/sites\/2\/2026\/04\/01105501\/Weekly-Europe-Brent-crude-spot-price-SOURCE-US-ENERGY-INFORMATION-ADMINISTRATION.webp\")
Fears of a lasting impact<\/h2>\n
Shipping delays and surging freight costs<\/h2>\n
Knock-on effect of rising raw material costs<\/h2>\n
Consumer confidence concerns<\/h2>\n