Earlier this week, the new UK-EU deal was announced, laying out the post-Brexit trade agreement. The deal introduced major changes to border checks and carbon compliance, including reduced SPS paperwork for food and plant products. It also provides a formal linkage between the UK and EU emissions-trading systems. But how will this impact UK retailers? Rob Shaw, GM EMEA at Fluent Commerce discusses.
The new Brexit reset deal is a welcome step forward for UK retailers. With reduced SPS checks now in place, we’re set for a genuine shift in cross-border logistics. Scrapping routine checks on most animal and plant products will mean faster-moving lorries, shorter port queues, and less red tape for everyone involved. For retailers, that means fresher food, fewer stockouts, and a smoother supply chain. Crucially, lower compliance costs and fewer delays will free up budget to reinvest in customer experience and innovation.
Retailers should also see clear savings from the UK-EU emissions trading alignment. Linking the schemes avoids the looming carbon border tax – potentially saving UK businesses up to £800 million by 2030. But it’s not just the direct costs, as the consequential reduced admin and greater cost predictability are also major wins for the sector.
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That said, not all frictions have vanished. Customs processes are improved, but still complex. Rules of origin, VAT, and regulatory divergence remain hurdles, particularly for SMEs. If food standards or carbon pricing start to diverge again, barriers could quickly re-emerge. And with trade volumes set to increase, the pressure will be on port infrastructure and customs tech to hold firm and any weakness here risks delays creeping back in.
Looking ahead, the stability this deal brings will give retailers more confidence to diversify supply across the UK and EU, without the fear of sudden red tape. Near-shoring and reshoring strategies will get a boost as cross-channel trade becomes more predictable and cost-effective. This will help tighten supply chains, reduce lead times, and lower risk. Smaller brands and artisan producers, a lot of which had pulled back from EU trade, are likely to re-enter the market, bringing greater choice for consumers and boosting exports, while also testing supply chain systems with more varied and complex fulfilment.
Retailers with sophisticated inventory management systems, who are able to swiftly adjust their supply-chains and flex order fulfilment to satisfy demand in new markets will be especially well placed to quickly take advantage of these changes. Overall, this is a green light for investment – retailers can plan with greater certainty, upgrade inventory systems, and double down on sustainability and resilience.”