As political leaders continue to outline Britain’s post-Brexit plans, clothing retailer Esprit has warned that the UK’s vote to leave the EU may affect consumer sentiment.
Thomas Tang, Esprit's chief financial officer, sent an email to Reuters this morning (30 June) saying that the political uncertainty in the aftermath of the vote could create “risk for an impact on the general consumer sentiment across Europe, where the majority of our business is located, but it is impossible to predict its timing and reach.”
"We obviously remain attentive to the developments in this most important matter... As for any broader impacts on the business, there are still too many uncertainties,” he added.
Esprit makes over 80 per cent of its sales in Europe, with less than one per cent of its revenue coming from the UK.
The result of the EU referendum has caused ripples in the global financial market, with the pound falling to its lowest level in 31 years.
Tang’s statement comes as research indicates that over a third of Brits will tighten their purse strings post-Brexit. According to a Retail Economics poll of 2,000 people, some 37 per cent said they would cut spending on larger purchases such as TVs, holidays, bathrooms and furniture, while Next’s chief executive has warned that clothing and food prices are likely to rise due to the vote.
The government’s business secretary Sajid Javid chaired a meeting earlier this week with UK business leaders to assuage their concerns, telling them that access to the European single market will remain a “top priority” when the UK negotiates exit terms with the EU.