Hard Brexit is expected to stoke rising food prices in Britain.

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Photograph: Alamy

Keeping supermarket shelves full and food prices down will be one of the biggest challenges faced by retailers in the days after a disorderly Brexit. The country’s frozen and chilled food warehouses have been maxed out by worried store chiefs stockpiling staples such as bread, pizza, butter and potatoes.Given that 70% of food imports come from the EU, the potential perfect storm of increased tariffs, delays at ports and a sharp fall in the pound is expected to stoke food price inflation.

In September Next’s chief executive, Simon Wolfson, suggested queues and delays at UK and EU ports would be one the biggest problems faced by clothing chains if the need for increased customs declarations created a logjam. Clothing prices could also rise if another currency shock pushes up costs for retailers which import goods in dollars.

“It is not yet clear how well prepared HMRC systems, customs and other relevant personnel will be for the upcoming potential increase in workload and data capture,” said Wolfson, a prominent Vote Leave supporter.

Retailers will also have to grapple with labour shortages, which could push up their wage bills. In 2017 the British Retail Consortium estimated that 6% of the retail workforce was made up of EU workers, with many working behind the scenes in warehouses and distribution roles.

Source: The Guardian.