Industry-Wide Study Reveals Concerns and Lack of Preparation
- Over a third of retailers unprepared for a ‘no-deal’ Brexit, warns Retail Economics survey
- Supply chain management, labour costs, and tariffs are top concerns for retailers
- 73% analyzed potential increases in sourcing costs, 27% have done nothing
- 59% identified ways to mitigate new costs through stockpiling, alternative routes, and currency hedging
A recent survey by retail analytics firm Retail Economics has revealed that over a third of retailers have done little to no preparation or feel ‘very underprepared’ for a potential no-deal Brexit. The top concerns for retailers in such a scenario are supply chain management (64%), availability and cost of labour (56%), and rising tariff costs (52%). While 73% have performed some analysis to quantify the impact on their business, 27% have done nothing. Almost a third (32%) said there would be ‘significant additional costs’. However, over 50% of retailers surveyed have taken some preparation measures, including stockpiling where possible, seeking alternative routes across the Channel, and currency hedging. Richard Lim, CEO of Retail Economics, commented on the situation: ‘Leaving the EU without a deal would give the UK total sovereignty over trade, borders, and immigration but would mean new, expensive, and disruptive checks and costs at the border for trade with the EU.’
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information based on an industry survey conducted by Retail Economics, discussing the concerns and preparations of retailers for potential Brexit scenarios. It includes relevant data and quotes from the CEO of Retail Economics to provide context and analysis.
Noise Level: 3
Noise Justification: The article provides relevant information about the level of preparedness of retailers for potential Brexit scenarios and their concerns, but it lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Retail industry
Financial Rating Justification: The article discusses the impact of Brexit on the retail industry and how it may affect supply chain management, labour costs, tariff costs, and other factors that can influence financial markets. It also mentions companies’ preparation for potential outcomes, which can impact their performance and stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
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