A no-deal Brexit would cause “supply chain chaos” for brands and retailers across the country, international delivery firm ParcelHero has warned, and there are fears it would come at the “worst possible” time for Christmas trading.
If the UK leaves the EU with no-deal on 31 October, ParcelHero says retailers do not have enough warehouse space to stockpile sufficient goods to meet the demands of both Brexit and Christmas.
“Either we have enough stocks to get through a no-deal Brexit or for a traditional Christmas. Retailers can’t magic space for both”, said David Jinks, head of consumer research at ParcelHero.
He added: “The UK’s available warehousing space is already bursting to the seams with stockpiled hard-Brexit goods of all kinds [warehousing space within the M25 is currently down to 2.2% – the normal national average is around 20%].
“This will reach a peak just when the usual influx of Christmas products pre-ordered by all the major stores in time for Christmas starts to flood in.
“There may be no room at the inn for Christmas goods this year, as the UK’s warehouses are already groaning with stockpiled supplies to counteract the potential explosive effect of a no-deal Brexit.”