Sainsbury’s: Tech and electrical goods will be hit hard by no-deal Brexit
Sainsbury’s has warned that a no-deal Brexit could have sever consequences for those shopping for tech and electronics over Christmas.
Mike Coupe, chief executive of Sainsbury’s group which includes Argos, has said that the deadline of October 31 is “not far off the worst day possible” for the retail sector.
He said that as retailers are progressively stockpiling goods in preparation for a no-deal Brexit, warehouses would be nearing full capacity by the time retailers begin stockpiling for Christmas in October.
“There are generally very, very few places you can go and the nature of the supply chain (for toys and other non-food goods) means you can’t really stockpile this kind of item,” Coupe said.
He added that electricals could be one of the worst affected sectors, alongside toys, as no-deal Brexit would affect trading relations with key countries outside of the EU where most tech products are made, and where EU-based agreements still govern.
This comes as Sainsbury’s posted disappointing 1.6 per cent drop in sales for the 16 weeks to June 29 this morning, a further decline from the 0.9 per cent drop reported in the previous quarter.