Monday, 15 April 2019

Stockpiling could lead to another Brexit boost and and slashed prices as firms stock up for Christmas ahead of October No Deal

BRITAIN’s economy could see another boost later this year as businesses consider stockpiling food and gifts for a No Deal Brexit Christmas.

Retailers will have to build up even more goods in warehouses if we leave with No Deal in October – and it could give Brits a bargain in the run up to the holidays.

Stockpiling for an October Brexit could give an economic boost – and shoppers could bag a bargain too
South West News Service

Last month’s economic figures for February revealed that No Deal spooks led to a spike in GDP as firms bought more stock.

With the next EU deadline now in October, businesses are gearing up to switch their planning for later in the year.

Firms will have to have even more stock in place to deal with demand if we left the UK as Brits started their annual Christmas shopping.

One beer company told the CBI they would need a warehouse “four times the size” of the current ones if we left in October.

Andrew Opie, the BRC’s director of food and sustainability, said: “Late autumn is a particularly busy time for retailers.

“Not only are they stocking up for Black Friday and Christmas, but the proportion of food products imported from the EU is significantly higher than during the summer months.”

Mat Woodcock, Customer Success Strategist at LLamasoft, told The Sun Online: “Stockpiling will temporarily boost spending figures, however, overall demand is not being increased – just moved.”

And it may be good news for consumers because “another delay to Brexit after October could see them bagging a few bargains as retailers sell off this excess inventory to release space.”

But he also warned that costs could be tied up with stockpiling over the summer – and could damage profits later on down the line.

Theresa May got a six month Brexit delay last week
PA:Press Association

Some businesses are more confident that a No Deal Brexit won’t happen after MPs in Parliament repeatedly voted against it – and even brought in a new bill to stop it.

But No Deal planning is continuing, Theresa May confirmed today.

Although civil servants have been stood down for the meantime, in a letter leaked to PoliticsHome she said the preparations would carry on regardless of the six month delay.

“Necessary preparations for a no deal outcome must continue, though with sensibly adjusted timescales given the extension we have agreed,” she said.

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