Yesterday’s referendum in the UK, where voters narrowly chose to exit the European Union, is sending shockwaves throughout the political and financial world. We’ve already seen impacts rip through worldwide financial markets, with the GBP falling against the USD to it’s lowest level in 31 years.
We’re not going to get into the arguments and theories between the “Leaves” and the “Remains,” but we will ask this question: What does the “Brexit” result mean for INTL retail, both in the short and long term?
SHORT TERM: THIS MAY STING A LITTLE
Naturally, as with anything this shocking to the world of International finance, we can expect some pain points in the short term. The GBP is falling fast, and consumer confidence will almost certainly be shaken in these first days and weeks following the vote.
Expect your UK customers to be especially skittish on spending while the logistics and realities of the UK/EU decision begin to set in.
LONG TERM: THE KIDS ARE ALL RIGHT
Switching to a long term outlook, industry experts and analysts don’t see the “Brexit” decision as impacting long terms success for retail markets.
Retail Gazette has a nice writeup with thoughts from PwC’s retail and consumer lead, as well as other thoughts leaders in the retail space.
Eventually, the turbulent seas will level out and business will be able to proceed as normal, but for the immediate, expect some rough sailing.
