default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

JD Sports Eyes European Warehouse To Counter Post-Brexit Tariffs

JD sports store. Shutterstock.

Britain’s biggest sportswear retailer JD Sports Fashion is likely to build a distribution centre within the European Union and create around 1,000 jobs there to avoid paying post-Brexit tariffs, its chairman said on Tuesday.

Several UK retailers, including Marks & Spencer and ASOS, have highlighted issues re-exporting goods to EU countries since the end of the Brexit transition period on December 31, with tariffs imposed on items not made in the UK.

“We (Britain) said we had a free trade arrangement, that’s really not the case,” JD Sports’s executive chairman, Peter Cowgill, told BBC radio.

“If you source from the Far East for instance and bring in to the UK and (then) ship to stores (in Europe) then the tariffs apply,” he said.

That meant JD would need to locate an additional distribution centre in Europe to complement its existing complex in Rochdale, northern England.

“With it goes the employment that was previously in the UK,” Cowgill said, noting it would need to employ about 1,000 people in Europe.

The chairman said a combination of post-Brexit tariffs, new systems, additional paperwork and red tape was costing the group “double digit” millions of pounds.

He said Brexit had so far been “considerably” worse than he had expected.

By James Davey; Editor by Kate Holton

In This Article
Topics

© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Chronicle the ‘Retail Apocalypse’ and emerging retail models, including DTC brands.

Aviator Nation’s pricey sweatpants and cashmeres had a cult following before they were swept up in the “dopamine dressing” phenomenon. Now, founder Paige Mycoskie – still the brand’s only shareholder – is ready to see just how big her vision for California surfer cool can get.


Small stores can remain competitive by scaling their private labels, testing new store concepts, and offering brands consumers can’t find on Farfetch or in Selfridges.



view more

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
How to Build a Profitable DTC Brand
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions and Privacy policy.
How to Build a Profitable DTC Brand