The Economist Intelligence Unit (EIU) has said that UK retailers will be hit by a “severe” economic shock which will “flatten out” sales for the rest of 2016 and beyond if Britain votes to leave the EU.
Out and Down: Mapping the impact of Brexit report said that the country could then expect a 3% fall in average sales for 2017 and that sales would be 6% down in 2020 as retailers continue to feel the impact of uncertainties over trade.
The new report said that shoppers were expected to "retrench and consolidate income and expenditure”.
"After this retail volumes in are expected to resume a more stable growth trend by 2020, but the lost years will have set retail back" the EIU added.
Former retail bosses including Sir Terry Leahy from Tesco, Marks and Spencer's Marc Bolland, Justin King from Sainsbury's and Sir Ian Cheshire from B&Q have all warned that a Brexit would be "catastrophic" for the country and the retail climate.
