Tech savvy retailers view Brexit as an opportunity

87% of retail business leaders are not prepared for the perceived threats to business continuity that may arise as a result of Brexit.

That’s according to research by ThoughtWorks, involving more than 1,000 decision makers in the UK. This found that retailers were most likely to be concerned about: changes to the import and export of goods and services to and from the EU countries after Brexit, including VAT and customs payments (36% vs. national average of 23%); the falling value of the pound (32% vs. national average of 24%); supply chain disruption and fulfilment (28% vs. national average of 20%).

Whilst concern over data safety and transfer were in line with businesses from other industry sectors (20%), retail was the sector where decision makers were the most worried about the risk posed by cyber attacks and their preparedness to manage it (19%).

Retail is also the industry where fewest business leaders believed they were fully utilising technology to their advantage - to win business, run efficient systems and attract the best people (35%). This is linked to business outlook for the year ahead; retail being the sector where business leaders were most likely to say that following Brexit they would downsize and lose business (10%).

‘Retail is being hit by a cocktail of macro-economic disruption at the moment. Technological change and issues such as urbanisation, climate change and an ageing population are fundamentally changing the sector - and the consumer’s terms of engagement with it,” says Kevin Flynn, Director of Retail Strategy at ThoughtWorks.

“Retailers that are using technology to their full advantage (for example: automation of core business processes, data driven buying and merchandising operations, personalised customer experiences) will see events such as Brexit as opportunities. Retailers that continue with inflexible ageing business models will struggle to survive.”