On the back of the UK's historic vote to leave the EU, the British Retail Consortium has called for clarity from the British government on how the process of disengagement will proceed, in order to maintain stability in the sector.
'We are already seeing the commencement of a period of considerable volatility as financial markets react to any emerging information that might indicate how the new relationship to the EU might be shaped,' the BRC said in a statement.
'Retailers should be prepared for the possibility of significant swings, particularly in the exchange rate and consumer confidence'.
It added that in order to 'keep prices down and to deliver the best possible choice for consumers, retailers' top priority in the short term will be to ensure the continued ease and minimum additional costs of importing EU goods into the UK for sale to customers.
'A prolonged fall in the value of the pound will impact import costs and ultimately consumer prices, but this will take time to feed through. In its exit negotiations the Government should aim to ensure that the trade benefits of the Single Market (i.e. the absence of customs duties) are replicated in the UK's new relationship with the EU.'
"Keeping the cost of goods down for consumers and providing certainty for businesses must be at the heart of the Government’s plans for life outside of the EU," said BRC chief executive Helen Dickinson.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
