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Walpole, the industry body for the British luxury sector, has revealed the impact of Brexit on British luxury exports ahead of the UK-EU Summit in London this morning. According to new analysis by Frontier Economics on behalf of Walpole, luxury exports to the EU are 43% lower than they would have been without Brexit. In what is the first comprehensive analysis of Brexit’s impact on the luxury sector, Walpole – a not for profit organisation that speaks on behalf of more than 250 of Britain’s finest brands including Alexander McQueen, Burberry, Harrods, and Jo Malone London – is calling on the Government to address EU trade barriers. The new analysis points to a substantial ‘Brexit effect’ on the luxury industry, which supports over 450,000 jobs and contributes £14.6 billion to the Exchequer. The effect has been particularly pronounced in fashion and accessories (-64%) and interior design, home and craftsmanship (-50%). Meanwhile, exports to markets outside the EU have nearly returned to pre-pandemic levels. Helen Brocklebank, CEO of Walpole, said: “The British luxury sector has incredible growth potential, with a projection to reach £125 billion by 2028. However, to achieve this ambition, we cannot afford to have one arm tied behind our back. “Strong links and favourable trading with Europe remain essential to reaching this forecast, alongside our success in other global markets, and key to supporting craft-led and high value manufacturing in the UK.” Since Brexit, businesses have faced a challenging global trade landscape, with complexities in UK-EU relations “compounded by rising US tariffs and reduced consumer demand in China”. Although the EU’s share of global luxury exports declined from 42% in 2017 to 32% in 2022, it remains the UK luxury sector’s largest export market, according to Walpole – ahead of both the US and Asia (each at 22%) and the Gulf (14%). Barriers to trade since the UK’s departure from the EU have included complex paperwork requirements and greater costs. Businesses have encountered delays in exports – driven by new certification requirements and customs complexities – and “disproportionately impacting brands with high customer expectations”. Businesses also face challenges with refunds and VAT reclamation, forcing some to absorb losses on returned goods. Additionally, some businesses have experienced operational uncertainties due to changing sustainability standards and labelling requirements. Several British luxury brands have established fulfilment centres and commercial entities within the EU to mitigate these issues, “diverting investment that could otherwise have supported UK growth”. Walpole has released the following recommendations to the UK Government to address such challenges: Join the Pan-Euro-Mediterranean Convention on Rules of Origin to support automotive and textile exports. Introduce a new digital labelling scheme to reduce complexity. Negotiate improved VAT cooperation with the EU. Secure a UK-EU Sanitary and Phytosanitary (SPS) agreement. Bring together freight and courier companies to deliver a consistent approach to trade rules. Launch a consumer confidence campaign in the EU to reassure customers it is easy to buy from the UK. Agree a Youth Mobility Scheme with the EU. Undertake a wide-ranging review of UK competitiveness. Walpole said that, if adopted together, such recommendations would provide a significant boost to British luxury brands’ export potential, as well as bolster the UK’s prospects for growth. The British luxury industry, which is worth £81 billion to the UK economy, supports over 450,000 jobs and contributes 3.7% of the UK’s GDP. Frontier Economics is one of Europe’s largest economic consultancies, with over 400 economists and offices in London, Dublin, Brussels, Paris, Cologne, Berlin and Madrid.

Timberland has named Darren Mckoy as its new Global Vice President of Product Design & Creative Direction. The appointment marks a return for Mckoy to Timberland owner VF Corp, having previously served as Product Manager EMEA for The North Face from December 2010 to February 2012. In a post on LinkedIn, Mckoy said: “I’ve been fortunate to work with heritage brands, shaping stories, building products, and collaborating with teams committed to connecting brand, consumer, and culture with purpose. “I’m excited to carry my experiences and learnings into Timberland, and to contribute to what comes next.” It comes after Mckoy stepped down as Global Creative Director of Dr Martens earlier this year. Mckoy first joined the British bootmaker in 2015 as Global Category Manager for footwear. He was promoted to Global Product & Merchandising Director in 2017, and later appointed Global Creative Director in 2021. In this role, he was responsible for reinforcing the brand’s original products while inspiring innovation that stays rooted in its heritage. Prior to Dr Martens, Mckoy also held various product manager and category positions at Asics, Adidas and Mamas & Papas. Founded in 1928, Timberland is an American outdoor brand renowned for its footwear. The company also offers a range of apparel, including clothing, watches, eyewear, sunglasses, and leather goods. It was acquired by VF Corporation in June 2011.

The US Treasury Secretary claimed Walmart’s CEO assured him the retailer would absorb some tariffs, contradicting the company’s earlier statement about raising prices last week.

The title could provide a handy source of new revenue for the Anglo-French magazine.

As more retailers report earnings, the industry is hoping more countries follow China in reaching agreements to lower tariffs.