‘October exit is bigger risk’
Tesco boss: We’ve less spare capacity
THE boss of Tesco issued a warning yesterday about the prospect of a no-deal Brexit at the end of October.
Dave Lewis said leaving the EU on October 31 “will present more challenges” than the end of March, the original date for the UK’s departure.
“We will be approaching the Christmas peak,” he explained.
“It’s about sheer potential capacity.
“In March it’s a fairly calm period and there is more spare capacity. In October there’s less spare capacity.”
Businesses spent millions of pounds preparing for the original March 29 date for Brexit.
Many stockpiled goods in anticipation of possible disruption.
Car plants brought forward temporary factory shutdowns for the same reason.
But trade body the Society of Motor Manufacturers and Traders has warned downing tools again to coincide with October 31 isn’t an option this time.
Several Tory party leadership candidates have declared they would be willing to leave the EU with no deal in October.
John Roberts, boss of online electricals chain AO, recently warned that a Brexit in late October clashed with both the run-up to Black Friday discounting and the Christmas shopping peak.
Lewis said Tesco had cleared goods it stockpiled for March, and it wasn’t rebuilding stock for October just yet.
Meanwhile, Lewis said he had unfinished work following rumours he could be moving on.
There has been speculation that Lewis, 54, could go after five years at the helm of Britain’s biggest supermarket chain, where he has led a major recovery. But, quizzed about the future yesterday, he said: “We haven’t finished what we started.”
His comments came as Tesco blamed political uncertainties and the weather as reasons for the chain’s growth in UK sales slowing to 0.4% in the 13 weeks to the end of May.