UK retail sales to EU drop £5.9 bn since Brexit; clothing exports fall

Though online retail is projected to add £323 billion (~$413 billion) of annual sales to EU economies, additional trade frictions due to Brexit-linked complications are curtailing this international sales opportunity for UK-based brands and retailers.

Headquartered in Ansbach, Germany, Tradebyte helps brands and retailers connect seamlessly. London-based Retail Economics is an independent economics research consultancy. Their research drew upon official UK trade statistics compiled in the first quarter (Q1) this year.

The value of non-food retail exports has fallen by almost 18 per cent since 2019. The UK non-food export environment, particularly in the clothing and footwear sector, has faced significant challenges after Brexit, with exports in this category falling from £7.4 billion (~$9.46 billion) in 2019 to just £2.7 billion (~$3.45 billion) in 2023.

So for brands and retailers lacking the necessary expertise, resources or financial capacity to navigate the complexities of the new regulatory landscape, this has put substantial pressure, UK media outlets reported citing the research document.

Challenges for them include escalated logistics costs, the complications of registering an EU entity for trading and increased delays in an already fiercely competitive market characterised by tight profit margins and the need for rapid response to the latest trends.

Before Brexit, apparel was a top three exporter for non-food retail, but now it is not so.

ALCHEMPro News Desk (DS)