The economic implications of Brexit are far from clear. For the retail and consumer sector, which still bears the scars of the last downturn and has shown signs of weakness in recent months, further uncertainty will expose the vulnerable. Now that the Brexit starting gun has been fired, businesses must look to build strength into their organizations to ensure they can handle the challenges and opportunities that the next two years will bring.
In this Executive Insights, London Partner Jonathan Simmons sets out eight key actions that companies and investors can take in order to build business resilience:
- Attack costs
- Keep your powder dry
- Push out marginal participants
- Demonstrate value for consumers
- Look abroad
- Limit further operational leverage
- Limit further financial leverage, and build liquidity reserve
- Sector choice will matter
Ensuring cost bases and business models are resilient enough to survive and thrive, whatever the economic outcome of Brexit, will be the most prudent investment many retail and consumer businesses will make.