British fashion retail sales to the EU have plummeted post-Brexit, with exports dropping over 60 per cent from £7.4 billion in 2019 to £2.7 billion in 2023, according to the latest Brexit to Breakthrough report by Retail Economics and Tradebyte. Overall, UK retail sales to the EU have fallen by £5.9 billion.

Clothing, once a top UK export, has been overtaken by health and beauty, electricals, DIY, and gardening, which now account for three-quarters of non-food retail exports. Despite inflation softening the impact, the total value of UK non-food retail exports to the EU has still declined nearly 18 per cent since 2019.

Brexit-related trade frictions including higher logistics costs, customs complexities, and regulatory hurdlescontinue to stifle international online retail. These barriers are limiting UK brands access to the EU’s £322.6 billion e-commerce market.

However, onlinee marketplaces have emerged as a key survival strategy, now accounting for £133 billion (40 per cent) of EU e-commerce. Richard Lim, CEO of Retail Economics, emphasized their importance in helping UK retailers navigate Brexit’s long-term effects.

While Brexit has reshaped UK retail, digital marketplaces are proving essential for brands looking to rebuild European trade and drive future growth.