Brexit Effects on UK Retail: Business Impact Analysis from 2018-2020

This report analyzes the effects of Brexit on the UK retail industry between 2018 and 2020. It begins by defining Brexit and its immediate impact on UK retail, including minimized customer ranges and decreased sales. The research problem focuses on how retail businesses can mitigate Brexit's negative effects. The report explores the impact of Brexit on retail growth, the strategies retailers used to overcome challenges, and government policies implemented during this period. Primary research methods, including questionnaires distributed to retail managers, were used to gather data. The findings discuss the concept of Brexit in the context of retail, its impact on growth, retailer coping mechanisms, and government strategies. The report concludes with recommendations for retailers and acknowledges limitations in the research.

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