Thirty per cent of retailers are considering changing their suppliers following the Brexit vote, due to concerns over price changes in the EU.
Twenty-eight per cent are also considering sourcing their products from new countries, according to research Barclays published recently.
The UK could however stand to benefit from this new sourcing initiative, along with Africa and Asia.
“Our survey shows that following the vote to leave the EU, sourcing from non-EU countries may grow in popularity, perhaps due to uncertainty around tariffs and trading agreements with the EU” head of retail at Barclays Ian Gilmartin said.
“The currency moves since the referendum make this option more attractive for retailers, and it may also help them reduce lead times, with sourcing closer to home allowing brands to react more quickly to spikes in demand and challenges posed by unseasonal weather”.
Over 80 per cent have stated that they anticipate a negative impact from exchange rates and 70 per cent are rethinking currency hedging.
Far fewer retailers have said that they think the change in exchange rates and suppliers will increase prices for their customers, with just over a third expressing concern. The rest of the retailers surveyed stated that they plan to absorb whatever costs these changes will bring.