8 / 48
8
| summer
2016
|
retailer
Someone said to me the other day that anyone claiming to be
able to predict the path of British politics has been proved, by
events over the past few weeks, to be either a liar or a fool.
I certainly appreciate the sentiment. We are living through an
incredibly uncertain time and it seems that the ballots cast on
that otherwise unremarkable Thursday in late June have
changed everything.
Well it might seem that way, but in truth, beyond the end of
some political careers, not so much has actually changed.
The referendum vote itself has not changed the intensity of
competition in the market, the relentless pursuit of delivering for
customers day in, day out, or the ongoing structural change in the
industry driven by digital and technology.
The terms under which retailers do business and, crucially,
customers should see little, if any, difference in the shops until the
UK actually leaves the EU. Yes, the pound has fallen and this will
make imports more expensive.
However, the time it takes for any input price increases to make a
re-appearance will depend on a combination of factors, including
further changes in the pound, commodity prices, and the ability of
retailers to move pricing given that intensity of competition. So,
there won’t be any instant shocks as any changes would take time
to feed through.
For these reasons, it is incumbent on us all to keep a level head in
this intervening period so as not to unduly alarm customers,
colleagues or investors. Maintaining consumer confidence is vital
– without it a recession will become a self-fulfilling prophecy –
let’s not talk ourselves into it. We had a great retail industry on
the 22nd of June, we have a great retail industry today and we
will continue to have a great industry tomorrow.
The Government has some reassurance of its own to be doing,
too. UK retailing employs around 120,000 EU nationals, each of
whom make a hugely valued contribution to the success of retail
businesses up and down the country.
We want to see them continue that contribution and the
Government should lose no time in reassuring our people,
wherever they may come from, that their right to work
here will continue.
There is a job underway in thinking about what we, as an
industry, want life outside the EU to look like. In any Brexit
negotiations the BRC will be encouraging the Government to
aim for an outcome that avoids new costs or restrictions on
goods that are traded within the EU. We also know there will be
opportunities to further improve the UK’s trading relationship
with other non-EU countries and aim to persuade the
Government to reduce or remove any unnecessary costs or
barriers to those new trading opportunities.
The domestic agenda is crucial too. The economy in general, and
retailing in particular, cannot afford for there to be a paralysis on
the home front while decisions about our relationship with the
wider world are made. We’ll be pushing for clear priority to be
given to those initiatives that will enhance the competitiveness of
UK businesses and for programmes that are in train that do not
achieve this aim to be paused or scrapped altogether.
So, while nothing will have changed by the time this edition of
The Retailer goes live, we’re certainly facing an interesting, if
uncertain, future.
Not wanting to be branded the liar or the fool, I won’t make any
predictions for the detail of what’s to come. What I can say with
certainty, however, is that the BRC is working hard to get the best
out of whatever is next for the industry, enabling retailers to
continue to offer great choice and value to customers, as well as
keeping our members up-to-date with the latest developments
every step of the way.
Fight brexit uncertainty by getting on
with business as usual
8
| summer
2016
|
retailer
news from the brc
helen dickinson
chief executive obe
BRitish retail consortium