Effects of Brexit on UK Business and Companies (2018-2020)

This dissertation examines the impact of Brexit on UK business and companies between 2018 and 2020. It explores the concept of Brexit in the context of retail businesses, ways used by UK retailers to overcome the impact of Brexit, and strategies governed by the government to mitigate the impact of Brexit. The research is based on primary research methodologies and data is collected through 30 respondents.

Effects of Brexit on business and
company's in UK between 2018
and 2020

Table of Contents
INTRODUCTION ..........................................................................................................................4
About the topic.......................................................................................................................4
Research problem...................................................................................................................5
Research rationale..................................................................................................................5
Research aim and objectives..................................................................................................6
LITERATURE REVIEW ...............................................................................................................7
What is the concept of Brexit in context with retail businesses in United Kingdom.............7
What is the impact of Brexit on the growth of United Kingdom retail industry between 2018
and 2020...............................................................................................................................10
What are the ways used by United Kingdom retailers for overcoming the impact of Brexit
between 2018 and 2020........................................................................................................12
What are the strategies governed by government for overcoming the impact of Brexit on
United Kingdom retail industry between 2018 and 2020.....................................................15
RESULTS AND DISCUSSION....................................................................................................18
Concept of Brexit in context with retail business in United Kingdom.................................18
Impact of Brexit on the growth of United Kingdom retail industry between 2018 and 202019
Ways used by United Kingdom retailers for overcoming the impact of Brexit between 2018
and 2020...............................................................................................................................22
Strategies governed by government for overcoming the impact of Brexit on United Kingdom
retail industry between 2018 and 2020.................................................................................25
Methodology .................................................................................................................................28
Research philosophy.............................................................................................................29
Approach .............................................................................................................................29
Design...................................................................................................................................29
Data collection and analysis ................................................................................................30
Research strategies...............................................................................................................30
Research method..................................................................................................................31
Ethical considerations...........................................................................................................31
Validity and reliability..........................................................................................................32

Time horizon........................................................................................................................32
Research resources...............................................................................................................32
Conclusion.....................................................................................................................................33
Recommendations..........................................................................................................................34
Limitations.....................................................................................................................................36
REFERENCES .............................................................................................................................37

INTRODUCTION
About the topic
Brexit is defined as withdrawal of UK from the European Union. This is regarded as
acronym of British exit which is one of the historic movement took place in UK. Brexit is
associated with introducing chances of Britain to moving back from the European Union. The
nation is holding referendum in its European union on the date of June 23. Brexit is having
direct impact over retail industry of UK as the industry is facing issue of minimised customer
range (Acquah-Andoh, Ifelebuegu and Theophilus, 2019). Britain is associated with suffering of
minimised sales as due to implication of Brexit companies are facing different issues related with
business management.
Brexit has recognised that British live from EU that these are the decisions which are
related with UK economy and could be helpful in dealing with various economic concerns. This
is giving larger impact to various attributes of the nation in which income level of people is also
impacted. This decision is also related with reducing sales of the business in which profitability
of the organisation is minimised (Păun, 2016). Apart from this it has been analysed that trade
practices within the operation and function of the business has been minimised due to Brexit
implications and this tend to develop various trade agreements. The retail industry has seen
various trends due to Brexit implication as this is one of the historic decision which has
minimised growth of the organisation in between the year of 2018 to 2020. This research report
is going to provide significant aspect related with Brexit and implication of the same. In this
manner the research is executed on retail industry and could be linked with analysing such
effects which are seen due to Brexit. On the other hand the report is also discussing various
strategies that can be used by businesses in order to overcome with the threat of Brexit.
Under this research, primary research methodologies are used so that effective and
accurate information can be obtained in developing the research in prominent manner. Under the
research information would be gathered through providing questionnaire to respondents which
are managers from different companies. This way it will be helpful for researcher to acquire
benefits related with attaining research objectives. Using quantitative methods data is collected
through 30 respondents so that accurate experience can be examined related with research topic.

Research problem
After the implication of Brexit this is analysed that retail businesses are facing various
issues in managing their business as various factors are existed in limited manner. The major
problem with the Brexit situation is related with developing the business in such a way that they
can minimise the impact of Brexit and in this manner various complications are seen by the
businesses. The pertained problem with retail businesses in UK is related arising situation of
Brexit as after this customers have bifurcated (Egan, 2020). This is the major reason that retail
industry is required to develop such practices in their businesses which will lead into gaining
edge in respect of managing negative impact. The pertained problem with the industry is
associated with analysing the ways in which the industry may deal with such negative impacts
and acquire prominence within market scenarios. On the other hand as the industry of retail has
developed to immense manner as there are various trends which are used within the industry and
this has led into using of such trends which are helpful in giving higher fluctuation to customers.
Research rationale
The research is related with examining the impact of Brexit on retail industry from the
year 2018 to 2020. This is analysed that due to separation of UK and EU the major impact is
seen by the retailer existed within UK and EU. The research report is related with examining the
impact of Brexit within retail industry of UK (Bloom and et. al, 2019). The major reason behind
selection of this research is to fulfil dual perspective such as personal and professional. In terms
of personal perspective there are various activities which are going to be executed within the
research and using these perspective effective nature can be carried out and at the same time
overall judgement can be made. This research simultaneously aid the researcher in applying
various techniques so that researcher may develop their own personality in appropriate manner.
The other benefit within this research is related with improving knowledge in context of retail
industry and impact drawn over the industry in respect of dealing with Brexit scenario. In terms
of personal perspective the research is providing various skills to the researcher such as critical
thinking skills, research skills, analytical skills and many other so that the same can be used in
future researches so that to complete the same with higher effectiveness. This research will
develop significant edge in developing personality so that future can be developed by personnel.

Research aim and objectives
Research aim: To identify the effects of Brexit on the growth of business and companies in
between 2018 and 2020: A study on United Kingdom retailers.
Objectives
 To identify the concept of Brexit in context with retail businesses in United Kingdom.
 To determine the impact of Brexit on the growth of United Kingdom retail industry
between 2018 and 2020
 To examine the ways used by United Kingdom retailers for overcoming the impact of
Brexit between 2018 and 2020
 To ascertain the strategies governed by government for overcoming the impact of Brexit
on United Kingdom retail industry between 2018 and 2020
Research questions
 What is the concept of Brexit in context with retail business in United Kingdom.
 What is the impact of Brexit on the growth of United Kingdom retail industry between
2018 and 2020
 What are the ways used by United Kingdom retailers for overcoming the impact of
Brexit between 2018 and 2020
 What are the strategies governed by government for overcoming the impact of Brexit on
United Kingdom retail industry between 2018 and 2020

LITERATURE REVIEW
What is the concept of Brexit in context with retail businesses in United Kingdom.
According to Faure, (2019), Brexit is defined as an abbreviation of two words such as
Britain and Exit which is referred as process in which United Kingdom took withdrawal from
European Union. On the date of 31st January 2020 this decision took place which has changed
various decisions for the businesses. On this day the nation will hold the referendum on its
European Union membership. Brexit is having direct impact over retail industry as the
businesses had to minimise their range and they had to compromise in limited number of
customers. Retailer within Britain is facing issue of decreased sales as customers has become
away from Brexit and the impact is seen over the industry. Brexit has recognised as one of the
greatest decision for UK and this has diminished the overall economy to their major manner.
The decision of Brexit has develop such negative impacts as in context of UK and their
businesses national attributes are exerted which are associated with seen impact within various
industries and nation as well. Most of the trade policies within UK is related with developing
flexible policies and the decision of Brexit has immensely developed their boundaries in which
business functions have been developed in limited manner (Milne-Ives and et. al., 2020). The
decision has also influenced various industry but at the same time the major impact is seen over
retail industry. On the other hand, the decision of Brexit has impacted trade policies and
judgement within business operations. In this manner under Brexit there are various features in
which United Kingdom is still having incorporation such as European union law, EU customs
union and division of European political parties. This is regarded as the huge transaction in
which most significant source of UK has lost their identity.
United Kingdom is regarded as one of the prominent nation which opportunities are
being rendered to new venture as in context of developing the business and earning profits as
well. The UK is also associated with developing the measures linked with export as the country
is having several resources and using such resources businesses may grow and acquire aspects of
success. So far as concerned the data of the year of 2015 demonstrated that United Kingdom has
exported more than £133 billion merchandises to the European Union so that it can be
considered that decision of Brexit has regarded as one of the most critical decision which is
having high power of command within retailer of United Kingdom as now they are not having

such target audience. In the year of 2018 the decision of Brexit was initiated and that was the
time in which retail industry started to sunk as they are able to predict future as in terms of
minimised sales and customer as well. Similarly this decision has drawn negative impact on the
customer as well, as customers are also seeing limited opportunities due to the decision of
withdrawal. For 2 years the negotiation between these two places took place and at the end in the
year of 2020 t he decision took place which has left many people unemployed and shut various
businesses as well
According to Ranta and Nancheva, (2019), There are various advantages of Brexit to the
nation as the country will now have stability and prosperity within community in which the
nation may have higher opportunities to enlighten their name in global manner. On the other
hand, the country is enhancing their GDP which is stimulating wages and jobs. Besides this,
growing the internal market will lead into domestic demand and develop free movement of
labour, cost and wages. Similarly the decision has developed free access to consumer in which
consumers are getting their desired products and services due to option of customisation. On the
contrary, this decision has developed negative aspects for the businesses as the businesses are
now having limited access to the market and this will lead into minimising their market access.
For Britain, the Europe is associated with developing the source of foreign trade investment as
UK is considered as one of the financial centre therefore the businesses those have left Britain
will have to face issues related with minimised customers and sales as well. United Kingdom has
their own currency so the country is not required to refrain joining the European Union and in
the same manner business within UK is having such power to execute their functions.
United Kingdom is associated with the most developed e-commerce market in Europe
which is reaching to GBP 92 Billions in the year of 2020. United Kingdom is playing significant
role in cross-border transactions in which due to impact of Brexit online sales of the goods will
be impacted. As in the year of 2018 when the withdrawal of United Kingdom from European
Union took place then the major impact was seen on retail industry as stoppage is seen on future
online and offline transactions by the public. United Kingdom is playing essential role in cross-
border transactions and due to the impact of Brexit the sales would be face a decline as in
compared to past years. This is clearly stated that sales of retail businesses in United Kingdom
has decreased in which decline in overall revenue is the other complication which is seen by the
industry. With the effect of new agreement since 1st January 2021 various business operations

may be distracted and multiple United Kingdom based retailer is suspended from sales in
European United Kingdom and Northern Ireland. Besides this the impact of the new trade deal
on cross-border transactions is not fully visible and this would lead into developing of various
challenges and opportunities as well in which Post-Brexit holds are seen by the retailer situated
in European Union and United Kingdom. The United Kingdom and European Union has a
secured deal in which free trade policies are made so that situation of Brexit can be dealt in easy
manner. As of 2021, United Kingdom and European Union in which state exercise tariff and
quota free trade yet imported goods are leading to develop VAT charges after the implication of
Brexit (Ramiah, Pham and Moosa, 2017). As the British high street has been facing various
issues in these years as due to economic uncertainties which is outcome of Brexit and this is
causing high labour cost and rent to such businesses. In the current time United Kingdom and
their retailers are facing higher issues related with developing their business in the time of
Brexit. Retail industry of United Kingdom is facing higher issues and this is the major reason
that the industry is facing issues of higher cost of labour and organisational functions. The free
trade agreement was initiated in the year of 2021 and this not only imposed additional cost due to
high shipping charges but also leading to face various struggling aspects due to which extra cost
is being imposed on them and this is related with causing complications to the business. As the
part of the agreement Northern Ireland is required to follow the EU regulations so that to avoid
any physical border between Northern Ireland and the Republic of Ireland. In order to comply
with such regulations giant retailer of United Kingdom such as Lewis and partnership and other
retailers temporarily suspended their business and sales in Northern Ireland and in the same
manner they are trying to align their business with new regulations and at the same time this is
causing them various complications of adoption of new rules.
Despite of these challenges the Brexit is now developed with various challenges and this
is likely to encourage retailers of United Kingdom in which purchase products from online rather
than offline stores situated in European markets. In the current time due to globalisation
customers can purchase products from abroad without any restrictions and this is the stage of
business continuation for retail industry (Dimson and et. al., 2016). However proportion of
foreign e-commerce is the situation in which sales value within United Kingdom is decreased
and this is the reason for which demand for such products are increasing. In a survey this is
analysed that after the implication of pandemic customer segment and businesses of retail

industry several issues are being faced as the segment is associated with senior customers. After
the implication of Brexit expected longer shipping times and extra VAT cost will be imposed on
customers and this will discourage them to make buying decisions. On the other hand,
interchange fees on cross-border transactions and payments between United Kingdom and
European Union are expected to hinder various transaction and United Kingdom is having full
independence so they are not required to follow laws made by European Union. The pandemic
has also tapped into new customer segment so that assistance is given to the businesses in
context of developing their business in new market range (Dováľová, Hošoff and Stracová,
2018). Due to popular British brands good quality of products are offered and using e-commerce
is that significant aspect which helps the market to make purchase decision from perspective of
customers. The online retail giant Amazon has opened their new distribution centre in
Amsterdam. It has also given the major advantage in context of attracting the major players in
which multilingual culture and workforce as well. Cross-border sales between United Kingdom
and European Union have been disrupted due to free trade agreement and this will have long
impact over retailers operations and development of e-commerce markets. Besides this, by
focusing on domestic online sales is generating opportunities for small and medium businesses in
which due to Brexit issues are being faced. Retailers of United Kingdom are working to develop
their supply chain so that to provide opportunities for medium businesses to overcome with such
difficulties so that to increase CAGR in overall manner. By attracting new players and brands in
which European e-commerce are seeing an opportunity to speed up their development phase and
reducing gap within United Kingdom in context of their digital infrastructure.
What is the impact of Brexit on the growth of United Kingdom retail industry between 2018 and
2020
As according Bloom and et. al., (2019), to the viewpoint of there are various issues which
are being faced by retail industry of UK as the decision of Brexit is directly related with retail
industry and customers. Each and every business in UK is having significant reasons and issues
due to which they are limited to face market access and appropriateness as well. These are the
issues which are truly related with growth and sustainability of the industry. In the markets of
UK people are highly prone towards adopting new trends but at the same time due to Brexit
implication consumer will have to limit their needs as they are not able to meet them after Brexit.
This separation leads the retail industry to face such challenges in which the industry is loosing

their customers. On the other hand, the European market is having access to all international
markets which means that businesses are having immense opportunities to expand their business
and capture larger customer base (Oxford Analytica, 2019). On the contrary, when the decision
of Brexit came then major problem with UK market is to execute their business functions. In this
manner, such aspects are associated with creating of issues for the businesses existed within UK
as now these businesses are having limited access to the market and customers as well. Some of
the issues are elaborated as under:
Supply chain management: Supply chain management is defined as the process in which flow
of goods and services within businesses are exerted. This is associated with including movement
and storage of raw material in such a way that end order fulfilment can be made. The implication
of Brexit has minimised the supply chain management of the business as now they are not able to
contact with their vendors in direct manner which results their business to minimise in attaining
customer satisfaction and approaching customers as well. Supply chain is regarded as one of the
main aspect which is used in the business so that to reach out to their customers and to acquire
sustainability in business functions (Hope, 2019). Operations of the business is impacted due to
minimised supply chain and this would be leading the retail business to earn lesser profits.
Inflation rate is the another reason due to which impact of Brexit is seen over retail businesses in
UK. In earlier time an organisation had so many vendors and suppliers but due to Brexit they had
to minimise their capture over the market and this is the major issue with such retailers as now
they are not active in the market as their past times. For retail industry their customers are
regarded as their prominent resources which means that the industry is executing each and every
effort in order to maximise range of their customers and after the implication of Brexit, the
industry is not able to capture their customers in any way.
In relation with the retail and consumer goods company, there are top fives issues which
are being seen while having Brexit. These are strategy, people, financial, legal, tax and
accounting supply chain management. The strategy is one of the plan which is made by the
company in order to retain customer for longer time within their organisation an by this they
could enhance their reputation in the market. Further, it is to how the position of business is to
capture opportunities which arises from disruption. The industry should have to think about the
contingency plans before which should be related with UK and should go into recession (Chen,
Jo Braithwaite, 2020). In this managers of the organisation of retail company should have to see

the impact of any “live” deals discussion which includes implications for the contractual
positions, “Brexit clauses” and the strategies of communications. The retail industry should have
to be clear on their strategy and should be having a contingency plan in order to develop
effective strategies. The next issue which can be seen while Brexit is people- as in this retail
industries should have to count the labour market which can impact the company because it will
begin to lose access to workers from the other parts of EU. It is to identify that how EU citizens
in the UK should be treated and this could impact the people and their families as well. It will be
rights which re being awarded to the individuals. This will be having directly impact to the retail
industry in growing opportunities.
The other is financial issues which can be consider the impact on their financial positions,
liquidity positions, investment funding and the stability of the new funding sources. These will
be review of the strategies and the influence (Fraser, 2020). The UK vote is to leave will enhance
their Foreign exchange counterparty, volatility and the interest rate risk. Also, they have to
consider the additional cost which is coming through selling in the European markets. The next
is retail industry is to understands about the which part of the tax will be remain in force and
which should be move over the time period. In this other bodies of legislative like EU economic
area memberships and world trade organisation place the other needful on the tax laws. The retail
industry should have to consider about the impact of Accounting standards and how they are
affecting the business in the 2019 and 2020. retail industry should have to consider the potential
indirect tax impacts on the trade of goods and services like duty rates and cost burdens will
potentially enhance. This will helps in development of the organisation and enhance their
productivity. Brexit has directly impacted the retail industry has they have tow work on their
labour markets and supply chain management. There is a increase in prices due to Brexit which
is being felt by British people as well.
What are the ways used by United Kingdom retailers for overcoming the impact of Brexit
between 2018 and 2020
According to Ries and et. al., (2017), Retailers are impacted a lot by the Brexit, there
revenue has reduced as well as the business is on stake after the crisis. So to overcome from the
burden of the Brexit many measures are been adopted by the UK retailers so that they can
overcome from it. Theses measures between 2018 to 2020 has some how help them but not this
much as another crisis are been faced by the retailer in between. These measures are been taken

so that they can help in delivering seamless product to the customer outside the country. These
ways are being discussed below:
 Decreases the tax burden with local presence: Many of the retailer of the UK are setting
their legal entity in the Europe so that they can sale their goods and service on the
European market. This is also done by them to remove the necessary burden of paying
the VAT or duty tax on the product. This method will be helpful for those small vendors
as this will reduce their cost which they need to pay after the Brexit crisis. Another major
taken by them to prohibit the tax is contacting with many of the intermediator agent
which help them in cross border exchange (Dhingra and et. al, 2017). They contact with
EU resident or VAT agent. With the affect on 1st July the retailer can have the access
IOSS return which help them to pay tax on the time of sale.
Adopting the offer payment method: The retailer of the UK has come out with the measure were
they are using those payment method which does not carry any interchange fees for cross
border exchange. This use this method because paying through cards is more expensive than
the alternative payment method. They use pay pal or buy now pay later method so that they
can increases their transition. This helps them by offering real time confirmation. The way is
adopted by the retailer so that goods can be import and export to cost the overhead cost. This
measure is one of the best way which boost the retail sector of the United Kingdom.
Minimising the disputes: When Brexit hit the retail sector many conflict arose between the
clients and the employee which impact in their customer bases. So to prevent their business
they start focusing on those measures which could help them in minimising the disputes.
They start open communication with the customer about the impact that are being caused by
them after the Brexit (Newth PhD and et. al., 2018). They told about the changes that occur
after that on goods and services, provide them the information related to the tracking. To
gain more customer loyalty they adopt the strategy of responding to the query on very short
period. The retailer of the UK also clearly mentioned their terms and condition related to the
product, process and refund.
Auditing their workforce: Many of the retail industry has adopt the measure were doing audit of
their employee so that they can know which employee is affect by them so that they can
financial help them (Oxford Analytica, 2016). This measures help the retails sector by
maintaing a strong relationship with the employee were employee retention increases and

the organisation need not to invest more in recurting the employee after the impact of Brexit.
This help the company as after the Brexit many employee leaves the nation so that they can
earn higher income but if company invest in them then their productivity will enhance.
Start partnering with local supplier: To overcome the impact of Brexit the company start taking
their raw material from the local market so that their productivity cannot stop. This is done
so that production can be maintained at the same level and the goods and service can be
distributed within the nation at slightly higher rate. Company also start procuring their
material from various supplier so that interdependence from single vendor cannot be there.
As most of the material are transported through Europe at low cost but after the VAT and
duty tax the material procurement is high, so they think of buying it with local vendor so
that cost of procurement can be low.
Innovation strategy: When Brexit hit the country the workforce has declined which create the
problem for the retail industry. So to overcome from this barrier they start adopting
innovative strategy through which they can attract the employee. They companies attract by
giving slightly higher salary to the employee. One of the impact was on driver so to enhance
the truck driver retail industry start attracting the employee from rest of the world so that
distribution does not affect (Bărbulescu, 2019). They also uses various idea which can also
boost their local market and compete within the industry in greater source. To enhance the
customer base they start offering discount on the goods and service so that client can
purchase the product and their revenue can be enhanced. As the exchange of cross border is
limited after the Brexit.
Online store: Many local retail vendor of the UK has start selling their goods and services
through online store as in the crisis there sale start decline which affect their personal
income. So boost the sale they start selling goods by online mode which help them in doing
cross border exchange. Many street store profit has reduced so to earn income this is the
option that they took so that they can overcome from the Brexit effect. They start investing
there capital to built an attractive and well designed website so that clients can easily get
what they want (Portes and Forte, 2017). Online ordering process seems to be great initiative
that retailer think.
This measure is taken by the retailer because many of the food and drinks product are being
imported by the Europe and if this continue then most of the companies over their will shut down

and the economic loss will occur. If this measures will not adopted by them then retail industry
will suffer a great loss and cannot be able to recover in the near future.
What are the strategies governed by government for overcoming the impact of Brexit on United
Kingdom retail industry between 2018 and 2020
According to Connelly (2017), The government of United kingdom has adopt as well as
changes various governing strategy so the retailer of the UK can overcome the impact occur due
to Brexit between 2018 to 2020. these strategies are discussed below:
 Change in the VAT: As the UK is retired from the European Economic Area so the
cross border is no more VAT and duty free. They need to pay the tax depends upon the
size, nature of good supplied by the European market to the UK customer. This is done
by the government of he country so that the can save their retail to sell their product on
the country and earn revenue on it. From January 2021 the certain amount on exemption
is given for small goods up to € 22. the online stores of the European country need to
pay the tax before they are exporting nay goods and services in the nation. They also
need to have there EORI number before shipping nay product (Tarrant and Tilford,
2018). This strategy is adopted by the UK government so that they can promote their
local retailers to sell their product within the country and increase their revenue which
was suffered due to the Brexit.
 Remembering them about the labour market: The UK government has adopt the
strategy by Motivating the retail sector about how strong the UK labour market is. The
labour workforce of the UK is about 74% which is much better than the US and Europe.
So to protect and boost the morale of the retail business UK government has adopt this
strategy. As after the Brexit many employee start leaving the job which result the retail
sector in reduce workforce. So the UK government overcome the impact by telling the
business should capture and capitalize the labour for the nation market as they have
healthy workforce instead of depending on the employee of other nation. They UK
government says that talent acquisition will be good at the time of Brexit within the
country, as this will also help them in economical development (Tetlow and Stojanovic,
2018). They should be open enough to gain employee from the nation itself.
 Encouraging the customer to buy from retailer within the nation: The new strategy
that is adopted by the government is to encourage the buyer of the retail industry to buy

the goods and services from the domestic retailer either going online and buy it from the
other nation. They implements so many tax rate when they purchase the product from the
European market. A report is conducted by the researcher which shows that from the
past five year data the consumer are banning the product of EU and start buying if from
the other country if the good is not available within the country. The higher rate of VAT
on purchase from EU also discourage the customer to buy the goods from the other
country (Howarth and Quaglia, 2018). This strategy will help the UK government as the
buyer shift their buying pattern over the local retail vendor. This help the retailer to
overcome from the impact and start gaining more market share for their brand.
 Restricting the card payment: The government of the country also restrict the card
payment so that export and import will be low from the Europe. From October 2021 the
government has announced that the holder of MasterCard and visa card will have to pay
the interchange charge if they are doing any cross boarder payment. This help the UK
retailer as they are gaining more strength in the local market which help them to recover
from the losses occur due to Brexit agreement (Lockwood and et. al., 2017). The small
retailer are gaining rise as they are also gaining importance of online selling in the local
market. This restriction not only help the UK retailer but also the government as they can
develop their economy which was affected by the crisis and the governed has to face
consequences on it.
 Providing various financial loan: The government of the country with the help of
various financial institution provide financial support to those retail sector which has
suffer a lot by the Brexit. Various loans, subsidiary where provides to them so that they
can rise the capital and invest it on their business growth and expansion. The Banks and
various cooperative body start lending money to them on lower rate of industry so the
retailer cannot loss hope. This is done with the motive of attracting various stakeholder
to start investing in them (Jachwitz, Schäfer and Schmutz, 2020). The legal authority
adopt this because the retail industry is the one of the main source which help the
country in economical development as the citizen purchase goods within the country and
the amount is being utilised by the people of the country for their betterment. The
strategy is also adopted so that they can boost the morale of the retail sector by providing
funds for their organisation.

 First and foremost strategy: According to this strategy the UK government try to
convince the retailer to look after the employee rather than hiring it from outside. The
retailer should think that the people within the company are there people which help
them to grow in the market. After the Brexit many employees left the job and the
production is lower down. So the retailer should look after their rest employee first and
prioritize them. So that immigration can be reduced and company can go digital platform
to sell their goods and earn revenue out of it (Ringe, 2018). To earn the competitive
advantage can be earn by the retailer if they focus on their employees needs and wants.
They should be of the view that the UK labour is much better than that of the European
country labour force.
These all strategies are adopted by the government to safeguard their retail sector and develop
their economy after the worst affect of Brexit on over all country. These Strategy that are
adopted by the country after 2018 will take time to recover from the affect and will gradual help
them in development (Strielkowski, Tumanyan and Kalyugina, 2016). Government are figuring
out a lot which help them to prevent them and help them to lie ahead of the Europe. They are
also promoting the strategy of open market for the buyers, employee and investor which lies in
rest of the countries other then that of European state.

RESULTS AND DISCUSSION
Concept of Brexit in context with retail business in United Kingdom
Brexit is characterized as a word form of words that are Britain and Exit which is defined
as procedure in which United Kingdom took back down from European Union. Brexit is having
straight impact on retail industry as the organization had to reduce their range and they had to
settle with restricted amount of consumers. Retailer within Britain is suffering from the problem
of reduced sales as consumers has become away from Brexit and the affect is seen over the retail
sector.
The decision making of Brexit has formulated such destructive impacts as in regards with
UK and their organizations national attributes are employed which are related with seen impact
within different companies and countries as well. Most of the trade policies within UK is
associated with formulating the negotiable policies and the judgement of Brexit has vastly
formulated their edges in which business role have been developed in controlled way. In this way
under Brexit there are several characteristics in which United Kingdom is still having
incorporation such as European union law, EU customs union and division of European political
parties. This is considered as the huge dealings in which most important source of UK has lost
their identification (Bloom, Bunn, Chen and Thwaites, 2019). In the year of 2018 the judgement
of Brexit was developed and that was the time period in which retail industry begin to ruined as
they are able to anticipate future as in terms of reduced sales and consumers as well. Similarly
this judgement has drawn unsupportive impact on the consumer as well, as customers are also
seeing restricted possibility due to the judgement of back down. For 2 years the discussion
between these two places took place and at the end in the year of 2020 the conclusion took place
which has left-hand many group unemployed and closed several business organization as well
There are several benefits of Brexit to the nation because the country will now have
stableness and financial condition within gathering in which the country may have high chances
to edify their name in international way. The judgement has formulated free accession to
customer in which consumers are acquiring their in demand products and services due to choice
of customized products. On the contrary, this judgement has formulated destructive
characteristics for the business organization as the enterprise are now having restricted accession

to the marketplace and this will result into reducing their industry approach (Brown, Rocha and
Cowling, 2020).
As in the year of 2018 when the back down of United Kingdom from European Union
took place then the leading consequence was seen on retail business as stoppage is seen on
upcoming online and offline proceedings by the public. United Kingdom is playing necessary
function in cross-border proceedings and due to the effect of Brexit the sales would be face a
declination as in compared to previous years. In the actual time United Kingdom and their
retailers are suffering large problems associated with processing their enterprise in the time of
Brexit. Retail business of United Kingdom is suffering large difficulties and this is the leading
explanation that the business enterprise is suffering problems of huge cost of working class and
organisational working. The free trade agreement was initiated in the year of 2021 and this not
only obligatory additive expenditure due to advanced transportation cost but also directing to
suffer different troubled feature due to which excess expenditure is being obligatory on them and
this is accompanying with causing complexities to the business organization. In command to
follow with such regulations large retailer of United Kingdom such as Lewis and partnership and
other retailers temporarily suspended their enterprise and sales in Northern Ireland and in the
aforesaid way they are trying to adjust their enterprise with fresh regulations and at the same
instance this is causing them assorted complexities of acceptance of fresh regulations (Breinlich,
Leromain, Novy and Sampson, 2020).
Despite of these problems the Brexit is now matured with different difficulties and this is
probable to promote retailers of United Kingdom in which buying products from online instead
of offline shop located in European marketplace. In the actual time because of the globalisation
customers can buy products from foreign without any limitation and this is the phase of
enterprise continuance for retail business. In a survey this is examined that after the implication
of pandemic customer section and enterprise of retail business various issues are being suffered
as the section is related with superior customers. After the entailment of Brexit anticipated longer
transportation time period and excess VAT price will be obligatory on customers and this will
discourage them to make purchasing judgements (Hantzsche, Kara and Young, 2018).
Impact of Brexit on the growth of United Kingdom retail industry between 2018 and 2020
There are different problems which are being suffered by retail business of UK as the
judgement of Brexit is straightly associated with retail business and consumers. Each and every

enterprise in UK is having important explanation and problems due to which they are restricted
to suffer marketplace accession and properness as well. These are the difficulties which are
genuinely affiliated with development and sustainability of the business. In the marketplace of
UK people are extremely inclined towards choosing fresh trends but at the aforesaid time due to
Brexit entailment consumer will have to bound their requirements as they are unable to meet
them after Brexit. This detachment results the retail business to suffer such challenges in which
the business is loosing their consumers. On the other hand, the European market is having
accession to all global markets which means that enterprise are having vast opportunities to
enlarge their enterprise and gaining control over bigger customer base. On the contrary, when the
judgement of Brexit came then leading issue with UK market is to implement their business role
(Heald and Hodges, 2020). In this way, such feature are related with creating of problems for the
enterprise surviving within UK as now these enterprise are having restricted accession to the
marketplace and customers as well.
In abstraction with the retail and consumer goods company, there are topmost five
problems which are being seen while having Brexit. These are strategy, people, financial, legal,
tax and accounting supply chain management. The strategy is one of the program which is made
by the institution in command to retain consumer for longer instance within their administration
and by this they could raise their image in the marketplace. Furthermore, it is to how the place
the enterprise which is gaining control over opportunities which originates from disturbances
(Thissen, van Oort, McCann and Husby, 2020). The business should have to think about the
continence program before which should be affiliated with UK and should go into recession. In
this managing director of the system of retail institution should have to see the effect of any
“live” deals discussion which considers implications for the written agreement positions, “Brexit
clauses” and the strategies of communications. The retail business must be clarified on their
strategy and should be having a contingency plan in command to evolve effectual plan of action.
The next problem which can be seen while Brexit is people- as in this retail business should have
to numerate the working class market which can consequence the organization because it will
start to suffer accession to employees from the other parts of EU. It is to determine that how EU
citizens in the UK should be behaved and this could effect the people and their families as well.
It will be rights which are being granted to the individuals. This will be having straight impact to
the retail business in flourishing opportunities (Bocse, 2020).

The other is financial problem which can be considered the effect on their financial
positions, liquidity positions, investing funds and the stableness of the fresh financial support
sources. These will be the revaluation of the strategies and the influence. The UK vote is to leave
will raise their Foreign exchange counterparty, volatility and the interest rate risk. Also, they
have to consider the additive expenditure which is coming via selling in the European markets.
The next is retail business is to understands about the which portion of the tax will be stay in
force and which should be move over the period of time. In this other bodies of assembly like
EU economical region memberships and world trade organisation place the other required areas
on the tax jurisprudence. The retail business should have to reckon about the effect of
Accounting standards and how they are impacting the enterprise in the 2019 and 2020. Retail
business should have to reckon the possible indirect taxation effects on the trade of goods and
services like duty taxation and expenditure burdens will potentially improve. This will assist in
improvement of the system and improving their productiveness. Brexit has straightly affected the
retail business has they have to work on their labour markets and supply chain management.
There is a addition in cost due to Brexit which is being felt by British individuals as well
(Hohlmeier and Fahrholz, 2018).

Ways used by United Kingdom retailers for overcoming the impact of Brexit between 2018 and
2020
Measures between 2018 to 2020 has some how helped retail industry but not this much as
another crisis are been suffered by the retailer in between. These measures are been taken so that
they can aid in delivering seamless product to the consumer external of the nation. These ways
are being discussed below:
Reducing of the taxation load with localised existence by decreasing the essential burden
of paying the VAT or duty taxation on the product. This method will be assistive for those small
sellers as this will minimise their expenditure which they required to pay after the Brexit crisis.
Another leading taken by them to restrict the taxation is interacting with many of the mediator
causal agent which assist them in cross border dealings. Choosing the offer payment way
because this method paid via cards is more costly than the secondary payment way. They use pay

pal or buy now pay later method so that they can improve their transition. This assist them by
offering actual instance verification. The method is chosen by the retailer so that goods can be
imported and exported to expenditure the overhead charges (Erken, Hayat, Prins and de Vreede,
2018).
Reducing the conflicts in command to forbid battle in enterprise. They begin with the
open communication with the consumer about the effect that are being originated by them after
the Brexit. They were communicated about the alteration that happen after that on goods and
services, supply them the message affiliated to the tracking. To increase more customer loyalty
they choose the plan of action of reacting to the question on very short time period. Examination
of their manpower in command to know which employee is affected by them so that they can
help them financially. This measures aid the retails industry by holding back a powerful
relationship with the worker where employee possession increases and the administration need
not to invest more in recruiting the worker after the effect of Brexit (Hassan, Hollander, Van
Lent and Tahoun, 2020).
Started partnering with localised vendor in command to overcome the effect of Brexit.
The institution start taking their unprocessed material from the localised marketplace so that their
productiveness cannot finish. This is done so that manufacturing can be well-kept at the same
level and the goods and service can be apportioned within the country at slimly high charge.
Organization also begin obtaining their material from assorted vendors so that mutuality from
individual vendor cannot be there. Innovation strategy is used when workforce has declined and
created the difficulty for the retail business. So to overcome from this obstruction they start
choosing innovative strategy via which they can pull off the employee. Organizations attract by
giving slenderly high remuneration to the employee. One of the effect was on driver so to
improve the truck driver retail business start attracting the employee from rest of the world so
that distribution does not get affected. They also utilizes different thoughts which can also assist
their localised marketplace and compete within the business in larger source. To improve the
customer base they begin offering discount on the goods and service so that customers can buy
the product which enhances the revenue (Bruneckienė, Mikalonis and Rapsikevičius, 2020).
Numerous localised retail seller of the UK has begin merchandising their goods and
services via online store as in the crisis there sale begin to decline which effected their personal
financial gain. So in order to hike the sale they begin merchandising goods by online mode

which assist them in doing cross border transactions. Many street shop has reduced their profit so
to gain income this is the choice that they took so that they can overcome from the Brexit effect.
They begin investing there capital to built the captivating and well planned internet site so that
customer can easily get what they want. Online ordering procedure seems to be innovative
initiatory that retailer can plan. These are the measures taken by the retailer because many of the
food and drinks product are being imported by the Europe and if this proceed then most of the
establishments will shut down and the economical failure will happen. If this measures will not
adopted by them then retail business will face a huge failure and unable to regain in the nearby
future (Fernández, Paz-Saavedra and Coto-Millán, 2020).

Strategies governed by government for overcoming the impact of Brexit on United Kingdom
retail industry between 2018 and 2020
The government of United kingdom has adopted alteration with different governing plan
of action so the retailer of the UK can overcome the impact happen due to Brexit between 2018
to 2020. These strategies are discussed below:
As the UK is inactive from the European Economic Area so the cross border is no more
VAT and duty free. They are required to pay the taxation based upon the size, nature of good

supplied by the European market to the UK consumer. This is done by the authorities of the
nation so that the can protect their retail to sell their product in the nation and gain income on it.
From January 2021 the definite amount on exemption is given for small goods up to € 22. The
online shops of the European country required to pay the taxation before they are exporting any
goods and services in the country. This plan of action is chosen by the UK authorities so that
they can boost their localised retailers to sell their trade good within the nation and gain their
income which was faced because of the Brexit (Ojo, Hubbard, Wallace and Davis, 2021).
The UK authorities has chosen the strategy by Motivating the retail businesses about how
powerful the UK working class market is. As after the Brexit many employee begin leaving the
business which leads the retail enterprise in decrement of the workforce. So the UK authorities
overcome this negative impact by stating the business that they should gain control and take
advantage the labour for the country market as they have flourishing workforce alternatively
depending on the worker of other country. They UK authorities says that talent acquiring will be
good at the instance of Brexit within the nation, as this will also assist them in efficient
evolution. They should open enough to increase employee from the country itself. The fresh
strategy that is chosen by the authorities is to promote the purchaser of the retail business to
purchase the goods and services from the domestic retailer either going online and purchasing it
from the other country. This implements taxation charge when they buy the product from the
European market. This plan of action will aid the UK authorities as the purchaser shift their
purchasing structure over the localized retail seller. This assist the retailer to overcome from the
impact and begin gaining more market portion for their company (Dominguez, 2020).
The authorities of the nation also curtails the card payment so that export and import will
be devalued from the Europe. From October 2021 the authorities has proclaimed that the holder
of MasterCard and visa card will have to pay the reciprocation charge if they are doing any cross
boarder payment. This assist the UK retailer as they are increasing more strength in the localised
marketplace which aid them to regain from the financial loss happen due to Brexit agreement.
The authorities of the state with the help of different financial organization provide fiscal
assistance to those retail businesses which has faced a lot due to the Brexit. The Banks and
several cooperative body begin loaning wealth to them on low charge of business so the retailer
cannot lost anticipation. This is done with the target of pulling on several stakeholder to begin
investing in them. The judicial authorization choose this because the retail business is the one of

the primary source which supports the nation in economic improvement as the citizen buy goods
within the nation and the amount is being used by the citizens of the nation for their
improvement (Billing, McCann, Ortega-Argilés and Sevinc, 2021).
UK authorities attempt to persuade the retailer to look after the worker instead of hiring it
from external source. The retailer should think that the group within the organization are there
people which assist them to develop in the marketplace. After the Brexit many workers left the
business which has resulted in the lowering of the productivity. So the retailer should look after
their rest worker first and prioritize them. So that immigration can be decreased and organisation
can go digital platform to sale their goods and gain income out of it. These all plan of action are
adopted by the authorities to protect their retail industry and evolve their economic system after
the worst impact of Brexit on over all nation. These Plan of action that are chosen by the nation
after 2018 will take time to regain from the affect and will gradual aid them in improvement.
Authorities are figuring out a lot which supports them to forbid and aid them to lie ahead of the
Europe. They are also advancing the plan of action of open marketplace for the buyers, workers
and capitalist which lies in rest of the nations other than that of European state (Crafts and Mills,
2020).

Methodology
Research methodology is refers to the tools and techniques that is being used by
researcher in order to gather data and information inmost effective manner. This tools and
techniques is helping the researcher in identifying, choosing, analysing and evaluating of the data
and information in efficiency manner. This will be resulting in achievement of research aim and
objectives (Snyder, 2019). In the provided report, the researcher is using qualitative method in
order to complete this research and collecting all data and information in most effective manner.
Within this research, Investigator is using research onion framework in order to analyse and
evaluate the the data effectively. This is mentioned below :

Research philosophy
Research philosophy is the very first layer of research onion framework. It describes the
set of beliefs that helps in achieving research aim and objectives. Also, it is set of beliefs which
helps investigator in adopting the situation of conducting the research in most effective manner.
It consist of two types of methods. These are ontological ad epistemological. And in this
epistemological philosophy is subdivided into positivism and interpretivism. At the time of
analysing and evaluating data and information for this particular research, researcher is using
interpretivism philosophy because this will helps in analysing information about a specific topic.
This choice is needed to gather qualitative information which is a in depth information about a
specific topic (Kumar, 2018).
Approach
This is the second layer of research onion framework which is used for analysing and
evaluating the data and information. This approach is being used for the systematic analysis of
the particular subject. It is consisting of two types of methods. These are deductive and inductive
approaches which could helps in analysing data and information. This research is creating most
effectively and this will be helpful in generating more reliable and valid information. For this
present study, researcher is using inductive approach because this provides information related to
the qualitative data and brings theoretical information. This will be helpful in getting reliable and
true information about a specific topic (Pandey and Pandey, 2021).
Design
Research design is the model which is chosen by a researcher. It allows investigator in
collecting and analysing data and information in most effective manner and gaining success as
well. Further, it consisting of three types of research design. These are exploratory, experimental
and descriptive designs. These will helps in connecting and analysing and evaluating the data
and information in most effective manner. Further, exploratory research design is used for
qualitative research and on the other hand, descriptive design is used for quantitative research.
Within this current study, researcher is using exploratory research design because this research is
based on qualitative methods and by this researcher could be able to get sufficient and valid
informational as compared with the descriptive method. This is a method which uses investigator
own ideas and thought on a particular subject and a topic and develops further information and
theory about a specific topic which is chosen in the given report. This research is explaining

about the unexplored aspects of the subject and the topic about what and how of the resaerch
questions which is made by researcher (Nayak and Singh, 2021).
Data collection and analysis
Data is being collected through two different methods such as it helps in collecting and
evaluating the data in most effective manner and getting true and reliable information about a
particular subject. Further, data collection will results in achievement of research aim and
objectives because researcher is gaining information about that particular topic only. So, it brings
reliable and valid information. This includes two types of methods. These are primary and
secondary data collection method. Primary data is that which is generated by the researcher
himself and it is collected through survey and interview as well. Further, it is specially designed
for gaining numerical data and information about a specific topics and subject. It solves research
problem at hand, on the other side, secondary research is the method which uses existing data
and information from the government institutions, health care facilities. It is generated from
these websites or a record keeping. This data is solution from the varicoloured datafile (Mohajan,
2018).
In order to conduct this research, researcher is using secondary data collection method.
Because it will helps in achievement of true and reliable data and informational and develops
efficient knowledge about a specific topic. Within this research, investigator is using secondary
data which is collected through already published data of the author and it is a past data. It is
collected through websites, journals, articles and government publications. This will be helpful
in gathering data through these websites and it is less costly as compared to the primary method
as well. In addition, secondary method is chosen because it takes short time to complete this
research. Further, it is presented in the form of literature review which provides in depth
information and knowledge about a particular topic.
Research strategies
Research strategies are the tactics and framework through which the entire research is
conducted and gathered the information in order to get authentic data for the research report.
There are various research strategies which are used maximum investigator in order to conduct
relevant research on the research topic. Experiment is one of the strategy where practical
information is gathered on the real time basis. Survey is an another strategy where questionnaire
and interviews are conducted to gather the general public opinion on the research topic. Case

study is also one of the strategy where real time case is provided in order to analyse it and
generate the research report accordingly. The current research report, case study is used in the
research strategy on Brexit and its impact on UK's retail industry. Case study is demonstrated in
the form of literature review by reviewing the paper written by different well known authors
(Zangirolami-Raimundo, Echeimberg and Leone, 2018).
Research method
Research method is described as the method used while researching on the topic either
qualitative or quantitative research. Qualitative research is defined as the collection of the data
and analysing it which is non numerical in nature. For example, text, video or audio. This types
of research is commonly used in the humanities and social sciences which includes anthropology
and education along with the health sciences and history and many more. There are different
types of qualitative research such as phenomenological and ethnographic along with the
grounded theory and historical which is followed by the case study and action research.
Quantitative research is defined as the process of gathering data and analysing it which is
numerical in nature. It is opposite of qualitative research. It also has different types such as
descriptive and correlation-al along with the casual comparative and experimental research. It is
attempted to establish the cause and effect relationships among the variables which is very
similar to the true experiments. In the current investigation, qualitative research method is used
on a theory basis by analysing the different case studies on Brexit and its impact on UK's retail
sector (Novikov and Novikov, 2019).
Ethical considerations
Ethical considerations is defined as the set of principles that guide the research design
and practices in order to conduct the entire research so that ethics can be maintained while
undertaking the whole research. These principles are important to follow which includes the
frank discussion on the intellectual property frankly by being conscious on more than one roles.
An appropriate following of the informed consent rules which respects the confidentiality and
privacy. There are various ethical resources which must be tapped for better following of the
commands while investigating. Moreover, other principles includes voluntary participation and
informed consent along with the anonymity and potential for harm which followed by the
communication of the results. Furthermore, study design and ethics approval is essential while
maintaining honesty, objectivity, integrity, carefulness, openness, responsible publication,

responsible mentoring, social responsibility, non discrimination, competence, legality, animal
care and human subjects protection (Bairagi and Munot, 2019).
Validity and reliability
Validity and reliability are the two main concepts through which it can be evaluated
about the quality of research undertaken. This help to indicate that how well the methods are
used for research along with the techniques and test measures. Reliability is basically the
consistency of the measure but validity is the accuracy of the measure. In other words, validity of
the research refers to how accurately the results among the study respondents represents in order
to gather the true findings among the individuals outside of the entire study. It is majorly applied
in the clinical studies which includes prevalence, associations, interventions and diagnosis.
Reliability of the research refers to degree to which research method produces the stable and
consistent results. Research is considered to be reliable if its applications on the same object of
number of times the measurements produces the same results (Ledford and Gast, 2018).
Time horizon
Time horizon refers to the time frame within which the project is expected to get
completed. It helps in completion of the research as per the time horizon selected for the
investigation. There are basically two types of time horizons in research that are cross sectional
or short term study and longitudinal. Cross sectional time horizon refers to the collection of data
which focuses on the specific point of time. It is of short duration and limited to the specific time
frame. It is not expensive ans even the less time consuming. It captures the specific moment in
time. Longitudinal time horizon refers to the collection of data on a repetitive basis over a long
period of time so that the data gathered can be compared in an accurate manner. This time frame
is a type of correlation-al research which involves looking at variables over an extended time
period. It can take weeks, months, years or even the decades also. The current investigation has
chosen the cross sectional which is the short term research. This is because the entire research is
based on the secondary data collection which is not time consuming and only analysis part needs
to be done which is easy with the secondary data (Basias and Pollalis, 2018).
Research resources
There are various resources which are required to conduct the entire research. Without
which the research cannot gain its relevant nature and reliability on the investigation undertaken.

Resources includes books and journals, articles and news, internet and magazines, newspapers
and brochures, case studies and review papers for the secondary data collection. These are the
important resources on which the whole investigation relies on. Resources used in the current
research were based on the secondary method of data collection which is easy to access and it
provides the better overview of the research topic which is portable and familiar in nature. It is
time and cost along with the energy efficient resources used in the investigation.
Conclusion
It is being concluded from the above information that Brexit has created a great influence
the economy, business and people. It creates a impact on the performance and productivity of
business due to which they have to face severe loss. Brexit is a situation when United Kingdom
withdrawal from European Union. United Kingdom is first state that has left the European Union
after 47 year of coming into party. The decision to withdrawal from European Union creates a
negative influence, every industry gets affected by Brexit due to manpower issues and potential
economic impacts. Organisation faces different issues when UK leaving EU, some of the issues
are supply chain, customs, workforce, regulation, economic issues and intellectual property. UK
left the European Union on January 31st 2020 at midnight. The government of EU and UK has
settled the trade deals which is known as Trade and Cooperation agreement. This agreement
helps in determining the future trading relationship between the markets. When UK leaves EU it
means they are leaving the custom union. The non-EU market are subject to EU tariff due to the
absence of trade deal. UK secured the trade deal that enable UK businesses to continue tariff free
trade with EU regulations. One of the provision of EU membership is tariff free. It is important
for organisation to apply for Economic operator registration and identification number so that
they can continue business with continent. Brexit has influenced that the disruption of goods and
services from UK to EU. It become difficult for the businesses to fulfil the orders of customer if
there is no proper trading and receiving goods easily. The businesses are responding to the issues
by stockpiling goods while trading between UK and EU. Due to the withdrawal the businesses of
both the country faced the issue, so for continuing trade across border it is important to keep
healthy and positive relations with EU suppliers and offer transparency in their trading practices.
It is important for business to maintain good relations with suppliers so that they can make better
supply decision and monitor and compare the supplier prices. Brexit has affected the business as
import and export of gods to and from EU countries including VT refund claims, VAT

payments, excise duties of items outside the free trade agreement are changed. The business have
to examine and revise the areas of their business including transport and logistic, product safety,
conformity or eco-compliance, including packaging and labelling that references EU licensing,
copyright trademarks and patents, environmental industry standards and ,mutual recognition of
qualification and relevant license. When transition period is ended, the custom duties have
applied at all imports in UK. The custom duty is applied to exports from UK once they have
arrived at their European destination. In order to avoid the problem of custom duties, EU-UK
agree on free trade agreement in which they have decided that products that are formerly moved
freely during the UK's membership of common market would be 0% tariff and also it is
restricted by quotas. This agreement is referred as preferential treatment and also there would be
no charge on custom duties or limits the quantity of products that are imported or exported
between EU and UK. As per the tariff guide of EU and UK, few goods are zero rated or have
very low tariff. Thus, it should not be automatic assumption that the preferential treatment can be
used for every import in EU and UK. By implementing UK Global tariff for imports there is no
need to abide by the rules of origin rules and simplify the trade and custom requirements. In
order to overcome the impact of Brexit, it is necessary for businesses to protect the employer
brand of UK by welcoming the skilled and highly expertise employees who can contribute their
best efforts in accomplishing the goals and objective of company. The Brexit vote determined
that UK is not welcoming and attractive destination for skilled labours. One of the way through
which negative influence of Brexit can be reduced is focusing on decreasing the tax burden with
local presence. The retailers of UK are creating their legal entity in Europe in order to increase
their sale and productivity of business in European Market. It also helps small vendors by
reducing their cost which they have to pay after Brexit Crisis.
Recommendations
 From the above research it is being recommended that retail industry of UK must focus
on developing proper plan that helps in increasing the profit and growth of business.
They must focus on offering discounted products that attracts large number of customer
towards the product ad services. Through planning retail industry can revamp their
operational response capability and seasonal demands on the consumer products and
services. It is important for retail industry to take precautionary steps to manage

disruption and accelerate import shipments, warehouse space and alternative suppliers in
order to run the business in effective and smooth manner.
 Retail industry must also focus on completing and submit the necessary customer
declaration procedures and forms for both exports and imports and must also implement
Economic operators registration and identification number.
 It is necessary to review the commercial contracts in order to understand and assess the
risk of Brexit and identify impacted terms and proposed response such as immediate re-
negotiation and creation of terms for future re-negotiation. Retail industry must also
focus on manage all key stakeholders in order to identify all expectation and
commitment. They must focus on engaging with regulators and trade bodies on
preparations.
 It is the responsibility of retail companies to develop clear communication plans with
suppliers and customer. They must focus on developing a strategy for government
engagement on the issues that matter most to the business so that they can stay up to date
on policy changes. Retail industry can also develop a strategy for government
engagement on the issues that matter most of the business so that they can influence the
future policy.
 Retail industry must also focus on undertaking regulatory review so that they can
understand what new labelling changes and product standard can mean for their products
and also identify where the products must be sold and produced.
 The retail industry must continuously communicate with EU workforce so that they can
encourage status certification and establish a process that monitor member state changes
to immigration and social security policy that creates an impact on UK workforce in EU.
 The cross borders of UK is no more VAT and duty free, the businesses have to pay tax on
the basis of nature and size of goods to UK customer by European Market. Government
has imposed the policies so that retail industry can sell their products in country and earn
more revenue. Through these strategy, retail industry can promote their local retailers to
sell product within the country and increase their profitability.
 It is important for retail industry to remember them about labour market and provide
them more opportunity so that they may not shifted to other country. UK is considered as
advanced country which have highly skilled and talented labours. So, it is essential to

motivate the retail sector as they helps in contributing to local economy. Retail industry is
considered as one of the largest industry which provide job opportunity to people and
also contribute in the economic development.
 After the Brexit many people start leaving their job which reduces the workforce in UK.
It is necessary for retail industry to focus on attracting and retaining the large workforce
so that they can help in increasing the profitability and growth of retail industry. UK
government said that talent acquisition will be effective and good at the time of Brexit
within country and also it helps in increasing the economic development.
 Retail industry also focus on encouraging customer to buy the products from local market
rather than buying from any other country. They must attract and retain customer by
offering them discount, high quality of products, coupons, rewards and offers to their
consumers so that they can buy the products from domestic retailer rather than buying
form any other country or online platform. If the VAT rate is high it influence the
customer to not to buy the product from any other nation.
Limitations
The limitation of this research is that it is time consuming process as to accomplish the
research lot of time is required in order to identify the relevant data of the topic. The other
limitation of the research is that it is difficult to investigate the causality as it requires a
thoughtful planning to get the accurate results. The research is based more on judgement and
opinion rather than results.

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Bairagi, V. and Munot, M.V. eds., 2019. Research methodology: A practical and scientific
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