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Published
Aug 4, 2016
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UK retailers review supply chains post-Brexit

Published
Aug 4, 2016

New research published by Barclays shows that retailers are adjusting their supply chains after the UK voted to leave the EU.


More than half of retailers, 52%, think they are unprepared for Brexit, but 56% believes it will have either no impact or a positive impact on their supply chain. Many are now reviewing how their supply chains operate, with 76% looking to build more efficient supply chains, 30% considering changing suppliers and 28% considering sourcing from different countries.

This could work out well for the UK though, as 32% predict that they will source more from the United Kingdom, with only 12% expecting a reduction. 52% expect to increase supply chain activity in India and 43% in China. 38% expect to buy more from African suppliers, and nearly half, 43%, anticipate a reduction in sourcing goods from Europe.

Commenting on the findings, Ian Gilmartin, Head of Retail & Wholesale at Barclays, said: “Getting your supply chain strategy right can be the key to success for retailers. It’s a mixed picture, but there are some encouraging findings in our post-Brexit survey. Retailers are not overly pessimistic about the impact of the vote on their supply chains, and yet they are still thinking carefully about what they need to do now, in particular with regards to which regions they source from and their foreign exchange strategy."

Just a third of retailers, 31%, said they expect cost changes to result in price increases for customers. Currency rates are a concern for retailers, however, with 81% expecting the effect of Brexit on foreign exchange rates to have a negative impact on their supply chain. 70% will be reviewing their currency hedging strategy in light of the referendum result.

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