Diamond Logistics says its recent growth has significantly outperformed expectations despite continued pressure on the wider retail sector and growing geopolitical uncertainty.
The company had initially forecast monthly growth of around 10%.
However, from January through to May it achieved performance 15% above forecast, pointing to continued resilience in underlying consumer demand.
While there were initially fears of consumer confidence taking a significant decline, largely due to households continuing to feel the pressure of rising costs and ongoing uncertainty linked to geopolitical instability in the Middle East, the British Retail Consortium (BRC) reported that retail sales had actually risen 3.7% year on year in May, marking the strongest increase since April 2025.
This uplift follows the International Monetary Fund (IMF) last month upgrading its UK growth forecast to 1% for 2026. They warned that ongoing geopolitical instability and domestic uncertainty could still weigh on growth, particularly through higher energy and food prices.
With the GfK Consumer Confidence Barometer also falling by a headline score of four points in April, reaching its lowest level since autumn 2023, it has since risen by two points.
Across the Diamond Logistics’ UK fulfilment network, warehouse utilisation still remains strong going into Q3. Goods continue to move consistently in and out of sites, with no noticeable drop in demand across either essential or non-essential categories.
Speaking on the company’s positive growth figures, Kate Lester, CEO and Founder of Diamond Logistics commented, “There’s no question the UK economy is under pressure right now, particularly with ongoing instability in the Middle East feeding through into energy markets which could lead to a temporary spike in inflation and a rise in interest rates.
“We’re already seeing the impact of rising fuel costs, and that always has a knock-on effect across the supply chain and consumer spending. This is due to fears that prices will rise and as such savings accounts take a hit. It leaves retailers having to operate in a far more cautious and price-sensitive environment that naturally translates to a dip in sales over time.
“But what we’re seeing on the ground is that consumer behaviour is holding up much better than some of the headlines would suggest. That’s not only reflective of the growth we’re achieving but from a fulfilment perspective. Volumes are still strong across our nationwide network, goods are still moving, and demand hasn’t fallen away in the way people might expect.”
According to Kate Lester even when finances are under pressure, consumers do not tend to stop spending on non-essentials altogether. Instead, buying behaviour changes.
She said this is a pattern the business has seen repeatedly during periods of economic uncertainty. Instead, she argues the reality is more nuanced. Spending tending to shift rather than fall away completely, as consumers continue to prioritise convenience, value and familiar purchasing habits.
Kate added, “In the last six years we’ve faced Covid, a succession of wars, persistent inflationary pressure, and ongoing uncertainty around interest rates. As a result people have become considerably more accustomed to an environment where things don’t necessarily feel particularly stable.
“We’ve also been around for a lot longer than six years. The pattern we’ve seen emerge over that time, especially during periods of economic uncertainty, is that although consumers might well pull back on bigger-ticket purchases, they will still allow themselves smaller, more affordable treats that feel manageable from a cost perspective.
“I think in general consumers are simply becoming much more resilient and have a better understanding that, rather than pulling back from spending altogether when times are tougher, and budgets become squeezed by rising costs of essentials such as bills, their spending habits often just need to adapt slightly.”
