The impact of Brexit on UK retail is profound. Billions in sales to the EU have been lost, reshaping trade landscapes.
Challenges for UK brands are intensifying, with trade frictions hampering growth despite soaring EU e-commerce. Extensive research outlines these dilemmas.
Since Brexit, British retail sales to the EU have plummeted by £6bn. Despite a thriving European e-commerce market, complicated trade dynamics limit opportunities for UK brands. Research by Retail Economics and Tradebyte highlights a nearly 18% decline in non-food retail exports, now valued at £2.7bn. Clothing and footwear sectors are notably affected, with inflation only partially cushioning the decline.
Among these, health & beauty and DIY & gardening are rare sectors witnessing a marginal rise in export values since 2019. This shift indicates a recalibration of focus for UK exporters in the face of post-Brexit challenges.
CEO Richard Lim remarks, ‘The profound shift in the UK’s trade relationship with the EU has hit British brands and retailers hard.’ Brexit has exacerbated these challenges, adding layers of complexity and cost.
Lim further states, ‘Marketplaces are a lifeline to access the EU market, accounting for over half of online sales among affluent consumers.’ This avenue offers scalability and lower risk, unlike traditional methods.
Effective navigation of these challenges is essential for UK brands seeking to remain competitive in the evolving EU market, where consumer behaviour continues to diversify.
While trade has dramatically shifted, the opportunity for adaptation and growth still exists within innovative channels like online marketplaces.
Navigating the post-Brexit environment is crucial for UK retailers seeking EU market success.
Strategic adaptation through online platforms offers a pathway to mitigate trade disruptions and seize growth opportunities.
