UK shops and travel companies lose money because of war in Middle East
Introduction
Several big UK companies like Sainsbury''s, WH Smith, Primark, Tui, and Crest Nicholson say the war in the Middle East is hurting their business. They say people are spending less money. This news came out last week.
Main Body
The war started in late February. US-Israeli and Iranian forces are fighting. Companies are telling people about the problems. On Thursday, Sainsbury''s said the war will hurt its customers and its business. It said profits may go down this year. The boss, Simon Roberts, said food prices will go up because energy costs are higher. He asked the government to help with energy costs for food companies. But he said shoppers are not changing their habits yet. Tesco, another big shop, said the war makes it hard to know future profits. Both shops have enough products. But they talk to the government about a bad situation where the war stops carbon dioxide for food makers. WH Smith also said it will make less money this year. It stopped paying money to its shareholders. It said fewer people are flying because of the war. People are not confident. Earlier, Primark''s parent company said sales were weak in April because of the war. Shoe Zone, with 259 shops, said costs for shipping and transport are higher. This will hurt its profits. Outside shops, travel company Tui told shareholders the war cost it about 40 million euros last month. It had to bring back thousands of holidaymakers and workers. Housebuilder Crest Nicholson said it will sell fewer homes this year. Costs are higher and buyers are not confident. It said its earnings will be between £5 million and £15 million. That is less than before. Its shares went down a lot.
Conclusion
Many UK businesses – shops, travel companies, and housebuilders – say the war in the Middle East is making them lose money. People are less confident. Costs for energy, transport, and production are going up. Some companies do not see big changes in shoppers yet. But many have changed their profit plans and ask the government for help.