Brexit: Majority of Retailers Still have No Plans in Place

It has been three years since the EU referendum, yet more than half (57%) of British retailers still have no plans in place for Brexit, according to a recent survey. To make matters worse, since the 2016 referendum, a third (33%) of retailers have experienced a fall in sales. With no clear plans for a post-Brexit in sight, more than half of retailers surveyed (54%) have a range of Brexit concerns.

This new study by Global-e, the cross-border e-commerce solutions provider, surveyed 200 British retail decision-makers. It discovered that:

• Half of retailers (49%) anticipate a collapse in consumer confidence in the UK post-Brexit.
• In addition, 43 percent anticipate difficulty in sourcing products or goods, and more than 34 percent are even considering rationing in the event of stock shortages.
• 43 percent of UK retailers shared that they will have to raise prices post-Brexit, regardless of the outcome.
• Overall, 52 percent are concerned that their business will be impacted negatively by currency fluctuations post-Brexit.

Despite all of these concerns, the majority of retailers still have no plans in place. Many have benefited from a weak pound – which makes UK products more appealing to shoppers overseas – but it has made importing raw materials more expensive. At the same time, retailers are anticipating a decrease in sales to the European Economic Area (EEA) after Brexit.

There have also been concerns that companies will choose to move their operations abroad. As of now, 70 percent of retailers say that have no plans to move. However, the number of retailers considering has increased significantly (22%).

Another factor retailers have had to consider is international growth planning. Surprisingly, 55 percent have not changed their international operations and strategy since the 2016 referendum. Just 18 percent have invested more in growing their business outside the UK.

Overall, the main concern is the lack of planning by retail leaders, despite being acutely aware of the issues their businesses face in the wake of Britain leaving the EU. Even so, recent data does show that retailers that sell internationally have actually experienced an increase in sales, defying the Brexit gloom.

Nir Debbi, Co-Founder and CMO of Global-e, says that making adjustments will be key in surviving Brexit. “Tailoring the online experience to cater for cross-border selling can be a simple, quick process that can open up new routes to growth for retailers of all sizes during these challenging times.”

Does your business need more information on the latest Brexit news or on merchant services like PayPal transparent redirect? Find everything you need to prepare for Brexit, international sales, payment processing and more at Best Payment Providers.

Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry and PayPal transparent redirect has helped thousands of business owners save money and time.