How Brexit Will Affect Fashion, Retail
Last week, Britain made history with its vote to leave the European Union. In the coming months, British and European leaders will begin negotiating the terms of Britain's departure. One thing is for sure: Britain's exit will affect the British economy, immigration policy, and lots more. And while it will take years for the full consequences to become clear, retailers and fashion brands in the U.K. are very concerned. For example, uncertainty about Britain’s future relationship with the EU, its largest trading partner, could push the U.K. into a recession. Friday saw huge market volatility, and the British pound lost 9 percent of its value since Thursday's vote. A weaker vote could send manufacturing prices soaring; either the brand absorbs that or it passes the cost on to consumers.
Total Retail's Take: Let’s face it, a near-term impact of Brexit is increased volatility in a market that’s already very volatile, which could put a damper on British citizens’ inclination to shop, especially when it comes to luxury goods. This will have significant effects both on British retailers and U.S. brands selling in the U.K.
Melissa Campanelli is Editor-in-Chief of Total Retail. She is an industry veteran, having covered all aspects of retail, tech, digital, e-commerce, and marketing over the past 20 years. Melissa is also the co-founder of the Women in Retail Leadership Circle.