More than two-thirds of UK fashion retailers (68%) have yet to start planning for when the UK leaves the European Union, according to new research.
A survey of 250 retailers undertaken by cross-border ecommerce firm Global-e has shown the majority of retailers are unprepared for the implications Brexit may have on their business, despite Article 50 being triggered next month.
Of the 45 fashion retailers surveyed, 62% think that selling abroad will become more complicated following Brexit and 51% expect consumers in the UK will have less confidence once Article 50 is triggered, leading to a reduction in spending.
However, 32% of UK fashion retailers that sell abroad have seen increase in online orders from outside the UK since the EU referendum due to the drop in the value of sterling and 69% are confident their business will continue to flourish internationally.
Just over half (51%) of all UK retailers surveyed said they had already seen an impact on sales in the UK since the EU referendum.
“As the Brexit bill moves through Parliament, retailers are facing up to the reality of what Britain’s exit from the EU might mean. Although some retailers have revised their plans, our research suggests that most are taking a wait-and-see approach, before considering whether to change course,” said Nir Debbi, co-founder of Global-e.
“In the months since the EU referendum took place, most retailers have already felt some impact, with many of those that operate internationally seeing an increase in sales from online shoppers worldwide due to the weakened pound and growing trend for cross-border ecommerce.”