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Sainsbury's boss latest to warn of hit from no-deal Brexit

Video Credit: Reuters Studio - Duration: 01:37s - Published
Sainsbury's boss latest to warn of hit from no-deal Brexit

Sainsbury's boss latest to warn of hit from no-deal Brexit

A no-deal Brexit would "inevitably disrupt" fresh food supplies in Britain because delays at ports would throw just-in-time deliveries into chaos, the chief executive of supermarket group Sainsbury's said on Friday.

As Ciara Lee reports, he's one of a number of retail bosses to warn of potential disruption.

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Fresh fruit and vegetables... just some of the potential victims of a no deal Brexit.

Supermarket group Sainsbury's is the latest to voice concerns.

Its CEO has said the October 31st Brexit date could not come at a worst time for shops with warehouses already full of Christmas produce British Prime Minister Boris Johnson says the government has been accelerating its preparations and the country will "be ready" for a no deal scenario.

The government has demanded supermarkets stockpile But bosses say that's almost impossible with fresh food The EU provides Britain with around 86% of its lettuces and 70% of its tomatoes.

Asked if plans were in place that meant disruption could be ruled out, Sainsbury's chief told the BBC he "disagreed wholeheartedly" And he's not alone.

The Chief Executive of Co-op, has said that some fruit might have to be transported more expensively via air from the Southern hemisphere to avoid congested ports.

"Operation Yellowhammer" - a report released this week by the government reveals worst-case scenarios.

It points to potential problems snarling up cross-Channel trade routes.

And it's not just food at risk.

PSA's chief has said a no-deal Brexit would be a "train crash" And the car group would take necessary decisions regarding its UK plants.

It also said it had halted investment at its UK factories while Brexit remains unclear.

Last week, a UN trade body warned that a no-deal Brexit would cost UK businesses at least $16bn.

With UK car exporters the hardest hit, losing about $5bn in sales to the EU.




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