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Published
Feb 24, 2017
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68% of UK retailers still have no plans in place for Brexit

Published
Feb 24, 2017

As the date for the triggering of Article 50 draws nearer, a new study has found that an overwhelmingly 68% of retailers have yet to start planning for Brexit. This is despite more than half of them saying that the EU vote has already impacted UK sales.


Reuters


According to a survey of 250 British retail decision-makers commissioned by Global-e, 21% of retailers have seen sales increase in the UK, while 30% have seen sales fall and 47% of retailers have seen no impact at all.

Meanwhile 32% of retailers who sell internationally have seen online orders from outside the UK rise, as international shoppers take advantage of the weakened pound to bag a bargain.

Although 62% of UK traders feel positive about the future, almost half (48%) of them expect the economy to weaken, making it more expensive to import goods. And 51% expect cross-border e-commerce to become more complex once the UK leaves the EU, but 44% said they will continue with their existing international operations.

With 63% of traders thinking consumer prices will increase in UK stores, 23% are planning to invest more in growing their business outside the UK.

“As the Brexit bill moves through Parliament, retailers are facing up to the reality of what Britain’s exit from the EU might mean. Although some retailers have revised their plans, our research suggests that most are taking a wait-and-see approach, before considering whether to change course,” said Nir Debbi, Global-e co-founder and CMO.

He warned that Brexit will likely change the VAT compliance of UK retailers selling to EU and the distance-selling regulations related to duties and taxes.

“How exactly this will be changed depends on the negotiations, however it is likely to increase the complexity of selling cross border, hence the logistics work and costs. In order to avoid any negative impact on their cross-border sales and the customer experience offered to international clients, UK retailers selling internationally should be ready to react to this as legislation is agreed and be wary of the impact it could have on their EU customers,” he added.

Retailers showed mixed opinions when it comes to a Hard or Soft Brexit. Almost half of traders are in favour of a softer option with some access to the single market, while 36% think that a Hard Brexit would be better for their business.

Additionally, Global-e said that a ‘Brexodus’ seems unlikely with only 16% of those surveyed saying that they would consider moving all or part of their business outside the UK to retain access to the single market.

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