Five years down the line, how’s Brexit been for British fashion retail sales? Pretty much a disaster, according to the updated ‘Brexit to Breakthrough – Market Expansion for UK Brands’ report by Retail Economics and software company Tradebyte.

British retail sales to the European Union have not only dropped by a staggering £5.9 billion since Brexit, clothing exports have been hit the hardest, falling by over 60% from £7.4 billion in 2019 to £2.7 billion in 2023.

Apparel has been supplanted by Health and Beauty (plus electricals, DIY and gardening) becoming the top exporters in non-food retail, now making up three-quarters of UK retail exports to the EU. 

Meanwhile, the value of non-food retail exports has fallen by almost 18% since 2019, despite hefty inflation softening the decline, the report notes.

Additional trade frictions caused by Brexit-related complexities such as increased logistics costs, customs complexities, and regulatory hurdles, “are curtailing international online retail opportunities for UK-based brands and retailers (worth an estimated £322.6 bn to EU economies)”, it also said.

Any good news? Despite these setbacks, online marketplaces have emerged as vital platforms for UK brands to regain ground in the lucrative European e-commerce market. Online marketplaces now account for at least £133bn (40%) of EU e-commerce.

“Five years after Brexit, UK retailers are still navigating its long-term effects, particularly when it comes to trading with EU consumers. Many have experienced a significant drop in trade flows, making it harder to maintain connections with key European markets,” said Richard Lim, CEO, Retail Economics.

“For brands looking to expand internationally, digital marketplaces have become an essential lifeline, providing a practical route to reach global audiences while overcoming complex trade barriers. By embracing these platforms, retailers can mitigate some of the challenges posed by Brexit and refocus on growth opportunities in an increasingly competitive global market.”

Alexander Otto, head of corporate relations at Tradebyte, added: ”Brexit has transformed the UK retail landscape, creating significant obstacles for UK brands and retailers aiming to expand in Europe, and making it far harder for them to tap into the flourishing EU e-commerce market.

”Online marketplaces now represent a platform for innovation and a scalable, low-risk path to reach affluent and younger EU consumers across a range of markets. They have emerged as crucial platforms to offset the challenges of Brexit and offer vital growth drivers in a competitive global market.”