According to an industry report, UK Retailers plan to on-shore £4.2 billion of products to the UK over the next 12 months. Covid-19 has created new pressures on retailers, exposing weaknesses in global supply chains and leading many to rethink their resilience strategies for the future.
Despite an overall drop in business turnover this quarter, ONS figures show that the wholesale and retail industry had the highest percentage of businesses experiencing increased turnover at 16%. While the sector is currently undergoing mass restructuring as businesses move online, consumer demand remains strong and is expected to exceed supply in the run up to Christmas.
The changes that retailers are implementing to meet demand are creating new growth opportunities for the UK economy and new jobs, while also protecting against future risk. Contractors working in the retail sector will be helping companies adjust to the new online environment and massive shift in production to ensure stock is available for the holiday season.
In addition to the pandemic, the uncertainty over Brexit negotiations is also providing an incentive for business to source domestic manufacturers. According to analysis, a no-deal scenario would create new tariffs of £7 billion for U.K. businesses, with most of the burden placed on food (17.1%) and clothing (10.6%).
The government recently attempted to make provision for the guaranteed functioning of the UKs internal market within the Internal Market Bill. However some clauses were overruled by the House of Lords for encroaching on international law. The government has made clear its intention to reintroduce the clauses when the bill passes to Commons next month.
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