Five years on from Brexit, the impact on British fashion retail is stark, with a dramatic decline in exports to the European Union. A new report reveals a staggering £5.9 billion drop in overall UK retail sales to the EU since the referendum. Clothing has suffered the most severe blow, with exports plummeting by over 60%, from £7.4 billion in 2019 to just £2.7 billion in 2023.
This downturn has reshaped the landscape of UK non-food retail exports. Health and beauty products, along with electrical goods, DIY supplies, and gardening equipment, have overtaken apparel as the leading export categories. These now represent three-quarters of all UK non-food retail exports to the EU. Even these sectors have not been immune to the effects of Brexit, with the overall value of non-food retail exports falling by nearly 18% since 2019. Inflation has partially masked the true extent of this decline.
The report highlights the trade frictions caused by Brexit, including increased logistics costs, complex customs procedures, and regulatory hurdles. These are hindering international online retail opportunities for UK brands, impacting an estimated £322.6 billion worth of trade with EU economies.
Despite this challenging environment, online marketplaces have emerged as a crucial lifeline for UK fashion brands seeking to regain lost ground in the European e-commerce market. These platforms now account for at least £133 billion, or 40%, of EU e-commerce. Experts suggest that digital marketplaces offer a practical route for brands to reach global audiences and overcome complex trade barriers. They provide a scalable and lower-risk approach to connect with affluent and younger EU consumers, mitigating some of the negative consequences of Brexit and driving growth in a competitive global market. While Brexit has undoubtedly reshaped the UK retail landscape, these online platforms offer a beacon of hope for fashion businesses navigating this new reality.
