Impacts of Brexit on the Retail Industry

Strategic Communications | Retail & Consumer Products

October 27, 2017

FTI Consulting is an independent global business advisory firm dedicated to helping organisations manage change, mitigate risk and resolve disputes.

With dedicated teams in key political and commercial capitals, FTI Consulting is well placed to help you navigate your Brexit challenges and manage commercial risk. Our Brexit Leadership team outlines the key issues facing the retail industry and what companies should be focusing on amidst the political uncertainty.

The Retail industry faces multiple issues impacting performance:

Customer Volatility

  • Highly sensitive to economic downturns
  • Brand loyalty is diminishing
  • Customer journey from offline to online is becoming more important – but cultural resistance within businesses
  • Increase in mobile shopping is impacting in-store pricing

Increasing Scrutiny

  • Ethical sourcing and manufacturing
  • Employee contracts (e.g. zero hour) and working conditions
  • Financial transactions and pension account deficit
  • Social responsibility and waste

Operations Reliability

  • Integration of multi-channel retailing
  • Returns management becoming complex and costly
  • Uncertainty over UK-EU data flows if UK classified as third-party country
  • Streamlining stock management

Escalating Costs

  • Rising employee costs
  • Depreciation of Sterling
  • Increases to business rates
  • Rising fuel and commodity prices
  • Escalating pension costs and deficits

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