PFS Research Finds UK Retailers Still Need to Prepare for Brexit
21 Décembre 2020 - 2:30PM
A new survey of UK online and omnichannel retailers conducted by
PFS, the operations business unit of PFSweb, Inc. (NASDAQ: PFSW),
reveals that the majority of retailers are yet to adequately
prepare themselves for the end of the Brexit transition period on
December 31, 2020.
With just over half (54%) of UK retailers reporting that they
are either fully prepared for Brexit, or will be by the end of
2020, this still leaves a significant proportion of retailers who
won’t be ready in time. The research has also uncovered that most
retailers believe Brexit will have some kind of impact on their
business operations.
For many, the arrival of COVID-19 pushed Brexit further down the
priority list. With talks ongoing to decide the future of the UK-EU
relationship, impacts on areas of the supply chain are already
being predicted. With pressures on customer services, fulfillment
challenges and a lack of clarity surrounding customs changes
dominating the data, what businesses choose to focus on first
remains to be seen – deal or no deal.
As the clock ticks down to the end of 2020, many retailers are
realizing that the time to act is now.
Key findings from the research include:
- Just over half (54%) of UK retailers believe they are either
fully prepared for Brexit, or will be by the end of 2020
- Nearly a third (29%) concede that they are yet to make any
preparations at all
- Four-fifths (79%) admit they will be impacted by any
cross-border effects of Brexit
- Two-thirds (67%) of respondents believe Brexit could cause an
order backlog in the first quarter of 2021
- More than half (56%) say these delays would be related to
sending goods to customers in the EU from the UK
- Two-thirds (67%) believe they will feel an impact when
importing products from EU suppliers
Ensuring a smooth transition
So far, only a third of retailers have assessed or implemented
new technology to increase supply chain efficiency (37%) and have
already, or are in the process of, integrating inventory and order
management software (36%).
With research showing that only a third of retailers have split,
or will be splitting, their inventory to base fulfillment in
existing UK or European sites, only two-fifths of the survey
respondents have already organized EORI numbers, which is a vital
part of Brexit preparations – and one that will be closely
monitored by HMRC. Similarly, appointing a Merchant of Record
(MoR), a third-party provider to ensure compliant VAT management
and reporting, sees the same figures, with even fewer implementing
any fraud prevention systems.
Maintaining customer satisfaction
Two-thirds of respondents say they are preparing for a Brexit
order backlog early in 2021 (67%) and expect delivery times will be
longer than they are currently able to promise customers (65%).
More than half of those surveyed have confirmed that their
contact centers are inadequately resourced to handle the
anticipated increase in customer complaints associated with
delivery delays in January 2021. Of particular note:
- 55% will not be able to handle an upsurge in returns that are
not related to Christmas
- A third of respondents (34%) already anticipate an increase in
customer complaints during the first quarter of 2021 as a direct
result of Brexit. To manage these concerns, 40% plan to proactively
notify customers about delivery delays and reduced stock
availability
A new approach required
UK retailers are also expecting to see a change in consumer
behavior in 2021. 43% expect their UK customers to shop with more
UK-based brands. As a result, 35% have said they will focus on
building a UK customer base.
Joe Farrell, VP of International Operations at PFS, comments:
“The retailers that are putting measures in place now, such as
using multiple distribution points across the UK and the EU to get
goods to customers on time, will survive and thrive post-Brexit.
Retailers operating in the UK and Europe should also look to
third-party fulfillment providers to help ready their supply chain
and mitigate potential issues arising from a no-deal Brexit
scenario. By reviewing where their customers are located and
determining how inventory should be dispersed across the two
regions, retailers improve their chances of getting products where
they are most needed, maintaining vital customer satisfaction
levels.”
To find out more about the research, read ‘The final
countdown: are retailers cutting it fine with their Brexit
plans?’ micro-report here. For a top-level view of our
findings you can view our infographic here.
About the research
In November 2020, Arlington Research, on behalf of PFS,
conducted a survey with 150 decision-makers with Omnichannel,
Operations, eCommerce and Digital Commerce, Supply Chain, Logistics
and Customer Services responsibilities in UK online and omnichannel
retailers with more than 250 employees. Verticals include jewelry,
cosmetics, apparel, fashion and consumer goods.
About PFSweb, Inc.
PFSweb (NASDAQ: PFSW) is a global commerce services company
that manages the online customer shopping experience on behalf of
major branded manufacturers and retailers. Across two business
units – LiveArea for data-driven marketing and
omnichannel experience design through technology selection,
platform implementation and orchestrated services, and
PFS for order fulfillment, contact center, payment
processing/fraud management, and order management services – they
provide solutions to a broad range of Fortune 500® companies and
household brand names such as Procter & Gamble,
L’Oréal USA, ASICS, Pandora, Ralph Lauren, Shiseido
Americas, the United States Mint, and many
more. PFSweb enables these brands to provide a more
convenient and brand-centric online shopping experience through
both traditional and online business channels. The company is
headquartered in Allen, TX with additional locations
around the globe. For more information,
visit www.pfsweb.com.
Media Relations:Jennie ArmleyBerkeley
Communications+44 (0)1189 090 909PFSweb@berkeleypr.com
Investor Relations:Sean Mansouri, CFAGateway
Investor RelationsTel 1-949-574-3860PFSW@gatewayir.com
Pfsweb (NASDAQ:PFSW)
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