Retail sector Brexit reaction
The British Retail Consortium has urged the Government to move quickly to explain the process of disengagement from the European Union.
Without clarity, the retail sector will suffer from a prolonged period of uncertainty it warned. The organisation also said that retailers should be prepared for the possibility of significant swings, particularly in the exchange rate and consumer confidence.
The BRC said that retailers’ top priority in the short term will be to ensure the continued ease and minimum additional costs of importing EU goods into the UK. It added that a prolonged fall in the value of the pound will impact import costs and ultimately consumer prices, but this will take time to feed through.
It urged the government to ensure that the trade benefits of the Single Market particularly the absence of custom duties, are replicated in the UK’s new relationship with the EU.
The BRC added: “In the slightly longer term, it is important for the Government to explain how it will handle legislation that was previously the responsibility of the EU. This is likely to be a time-consuming and resource intensive process affecting a wide range of stakeholders. We are sure the Government will put in place a clear and effective process for consulting interested parties as it reviews these regulations.”
BRC chief executive Helen Dickinson said: “Keeping the cost of goods down for consumers and providing certainty for businesses must be at the heart of the Government’s plans for life outside of the EU.”
Meanwhile, the organisation representing independent news and convenience retailers has welcomed the news that the UK is to leave the EU.
National Federation of Retail Newsagents chief executive Paul Baxter said: “Just days ago independent retailers sent out a very clear message that membership of the EU was bad for their businesses with stifling red tape and ever increasing operating costs. We are, therefore, pleased that these passionate calls have been heeded by the British public who have voted for a Brexit.
“But after such a monumental outcome, what is needed now is calm reflection and clear planning so the UK can move forward positively. We expect the government to include all parties and sectors, including business, in its negotiations and the NFRN looks forward to making sure that the voice of the independent retailer is clearly and loudly heard.”
In two polls carried out by the NFRN ahead of the referendum, nearly two thirds of independent retailers said they believed the UK should leave the EU and would be voting that way on 23 June.
The British Council of Shopping Centres said the referendum result will be disappointing for the UK retail and retail property sector, leading to further uncertainty in the market and in the minds of consumers.
Edward Cooke, acting chief executive at the BCSC, added: “The prospects for the wider economy and consumer confidence will now depend in part on negotiations over the UK’s new status.
“We hope those negotiations happen quickly and effectively to create the right conditions for the retail sector to continue to deliver employment opportunities and invest in UK towns and cities, contributing to local economies and communities.”
