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British Brands Move Offshore Ahead of Brexit

Brands and retailers are setting up logistics and warehousing facilities in Europe in preparation for a no-deal Brexit.

By Samantha Conti, Fiona Ma

April 3, 2019 7:08 am

Placards placed by anti-Brexit supporters stand opposite the Houses of Parliament in London, . British Prime Minister Theresa May was making a last-minute push Monday to win support for her European Union divorce deal, warning opponents that failure to approve it would mean a long ? and possibly indefinite ? delay to Brexit. Parliament has rejected the agreement twice, but May aims to try a third time this week if she can persuade enough lawmakers to change their mindsBrexit, London, United Kingdom - 18 Mar 2019 — Placards placed by anti-Brexiteers stand opposite the Houses of Parliament in London.
Matt Dunham/Shutterstock

British fashion and beauty businesses have been war-gaming a hard Brexit — which could come as early as April 12 — opening factories, warehouses, logistics and distribution centers on the European continent in a bid to dodge potentially onerous WTO tariffs on imports from the European Union.

According to a joint report from analytics company IHS Markit, manufacturers are stockpiling products at record highs. Harrods is one of those brands. Michael Ward, the retailer’s managing director and chairman of Walpole, which represents British luxury businesses, said: “The continuing uncertainty is impacting the ability of businesses to plan for any form of Brexit outcome.

“As a sector worth an estimated 50 billion pounds ($65.6 billion) to the U.K. economy, a the British luxury industry is profoundly impacted by the lack of clarity from the government on our future relationship with the EU.”