UK exports of high-end items to the European Union have lagged behind the broader growth of the countryâs luxury sector, a trend that industry lobby Walpole attributes to Brexit.
The value of shipments of British designer goods to the EU rose to £18 billion ($23.9 billion) in 2022, from £16 billion in 2017, a pace thatâs far below the industryâs 11 percent in compound annual growth during the same period, according to research conducted by Frontier Economics for the industry lobby.
Businesses have encountered delays driven by new certification requirements and custom complexities, said Walpole, which represents brands such as Burberry Group Plc and Fortnum & Mason Plc, in a Monday statement. The varying application of rules has also created unpredictable timescales and costs, it said.
As a consequence, the EU accounted for less than a third of UK luxury exports in 2022, a drop from 42 percent five years before, Walpole said. The bloc remained the single biggest destination for British high-end shipments, it said.
âWe cannot afford to have one arm tied behind our back,â Walpoleâs chief executive officer Helen Brocklebank said.
British brands have been outspoken about the impact of the countryâs exit from the EU on the sectorâs growth, which has been hampered by export lags and added administrative work. The removal of tax-free shopping for foreign visitors has also dealt a blow, with tourists now incentivised to claim rebates instead in other parts of the EU, where the tax break still applies.
By Jennifer Creery
Learn more:
Luxury Sector Faces More Gloom as Bain Cuts Sales Forecast
Consultancy Bain & Co forecast global sales of luxury goods to fall between 2 and 5 percent this year, sharply downgraded from previous estimates.