Home / Knowledge / News / Apparel/Garments / Brexit could depress British retail sales
Brexit could depress British retail sales
20
Jun '16
A decision by Britain to leave the European Union would have profound consequences for the future of both the UK and the EU, The Economist Intelligence Unit has said in a report titled 'Out and down: Mapping the impact of Brexit'. Britain votes on June 23 whether to remain in the EU or leave it.

“We expect real GDP in the UK to be 6 per cent below our baseline forecast by 2020 if voters elect to leave. This economic pain would be coupled with political instability, as significant doubts emerge about government cohesion. The impact will be serious, and prolonged,” it said.

As the Brexit debate has accelerated, some big names in retail have come out against a vote to leave. Last month, Sir Terry Leahy, Justin King, Marc Bolland and Sir Ian Cheshire jointly issued a statement outlining reasons to stay and the former chiefs of Tesco, Sainsbury's, M&S and Kingfisher respectively are among the closest thing to royalty that retail has.

Tesco's expansion under Sir Terry was so rapid that five years and two successors later the company is still struggling to find a way to manage the empire he built. Similarly Justin King oversaw 36 consecutive quarters of sales growth at Sainsbury's, a feat made even more impressive given that much of it was achieved during the global financial and subsequent Eurozone crisis. Ironically King's final trading statement marked the first of six consecutive quarters of decline for the retailer which continues to face a tough operating environment. Sir Ian himself oversaw a share price improvement of 120 per cent during his spell at Kingfisher. Marc Bolland's M&S performance was slightly more chequered but history may credit him as the CEO who helped cement the retailer's transition from clothing towards value added food.

“Either way when these four statesmen of retail say that Brexit “could be catastrophic for the consumer recovery on which so much of our economic stability depends”, businesses sit up and take notice. Further weight comes from Andy Clarke, Asda's chief executive who used the findings of another Treasury study to add that a Brexit would create an uncertainty in pricing that cements a Remain position for the WalMart owned retailer.

“The Remain campaign has successfully rolled out an array of respected figures in the business community to support its view that a Brexit would be economically damaging. For its part the 'Leave' campaign draws on the support and combined experience of a host of politicians including former chancellors of the exchequer. But when you consider that one of these, Norman Lamont, oversaw Black Wednesday when a run on sterling forced a withdrawal from the ERM at a reported cost of £3.4bn to the UK economy, then the economic claims of the Leave campaign appear to hold a little less credibility. Not only do Leahy et al force the world of retail to sit up and take notice but they are also difficult to fundamentally disagree with,” the report said.


Must ReadView All

Textiles | On 19th Aug 2017

New fabric interfaces to interact with computers

As computer capabilities evolve, new fabric-based interfaces are...

Textiles | On 19th Aug 2017

Brazilian cotton prices drop in first fortnight of August

Cotton prices dropped in the Brazilian market in the first fortnight...

Apparel/Garments | On 19th Aug 2017

Target to acquire Grand Junction for faster deliveries

Target Corporation has announced that it has agreed to acquire Grand...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search