3i Slumps on Warning of Middle East Hit on Retailer Action

3i Group Plc slumped after the private equity firm flagged slowing sales at discount retailer Action — which represents more than two thirds of its portfolio value — in a sign that even low-cost stores are struggling as inflation squeezes consumers’ wallets.

“Continued consumer caution in France and lower traffic in Germany since the deterioration of the situation in the Middle East at the end of March, resulted in flat year-to-date like-for-like performance in those countries,” the company said in a Thursday statement. Seasonal categories have also been affected by cooler weather in recent weeks, it added.