Brexit's Influence on UK Consumer Spending and International Trade

Desklib provides past papers and solved assignments for students. This presentation analyzes Brexit's impact on international shopping.

How BREXIT will affect
International Shopping
A presentation

 Introduction
 Argument 1- Increased cost
 Argument 2- Consumer shift towards
online shopping
 Argument 3- Reduced spending on
Holidays
 Conclusion
 References
Table of contents

After Britain deciding to leave EU, the
customers as well as businesses are
struggling to deal with inflation and worries
of Brexit. This report focuses on the assessing
the impacts of Brexit on the international
shopping. Some arguments are provided in
the report which will help in understating the
reason for the change in customer shopping
patterns.
Introduction

 BREXIT will result in increased cost which
will ultimately be passed to the consumers
(Deloitte, 2019).
 The companies who wish to purchase raw
material or finished goods from EU
countries will have to pay higher customer
duties which will result in even higher per
unit cost.
Argument 1- Increased cost

 The business can explore some other trade
destinations such as USA, Australia and
Canada so that rise in cost in the EU
countries can be offset.
 The customers can use online shopping
channels to access the markets of EU
countries and purchase items in minimum
possible prices.
Counter-argument

For example:
The aviation industry in the UK is operating
under a number of regulations from EU and
BREXIT will require forming new agreements.
Renegotiating will increase the complexities
and hence the cost of operation of aviation
companies in the UK (Bloomberg, 2019).
Evidence and examples

 After BREXIT the shopping habits of the
British consumers has changed drastically
and they the consumers are shopping
differently.
 Brick-and-mortar stores in the Uk have
experienced reduced sales and the situation
for these small businesses is challanging
Argument 2- Consumer shift towards online
shopping

With implementation of BREXIT, UK will no
longer be the part of EU trade agreement and
the price of all types of goods will be
increased
Brick-and –mortar stores owners can benefit
from this situation by building customer
loyalty and offering reasons to the customers
to come back (Reuters, 2019).
Counter-argument

 According to the MetaPack consumer
research report, UK based store like ASOS
will not experience any drop in the sales as
long as they are offering right shipping
options and converging prices (Deloitte,
2019).
 If UK retailers want to succeed, they have to
increase their sales in countries like
Australia, USA and Canada.
Evidence and examples

 After BREXIT, the depreciation in sterling is
expected to happen While outbound
tourism is expected to become more
expensive this will reduce the spending on
travel and tourism actibvities.
Argument 3- Reduced spending on Holidays

 If we see on the other side of the coin, the
depreciation in Sterling will also make UK
more attractive to the overseas travellers and
it will motivate them to spend more while they
are shopping in the UK (Bloomberg, 2019).
 Moreover, when the consumer spends less on
overseas destination, it will increase their
spending in the domestic market.
Counter-argument