Lush is relocating some of its UK-based European staff to Germany following Brexit – is this a one-off or a first of many in retail?

Lush lipstick

Lush lipstick

Source: Lush

Handmade cosmetics retailer Lush has has offered factory staff the opportunity to relocate from its Poole warehouse to its new Dusseldorf outpost.

The health and beauty retailer, which is renowned for its commitment to animal welfare and environmental values, has offered staff the opportunity to relocate from its Poole warehouse to its new Dusseldorf outpost after the result of the EU referendum raised concerns about their job security in the UK. So far, 18 staff members from six European countries have taken up the offer.

Lush’s new 75,000 sq ft Dusseldorf warehouse has 252 full-time employees and supplies products to European countries including Germany, France and Holland. It plans to expand its remit to cover Finland, Norway and Sweden from next year.

In a statement, Lush says: “While this was always the plan – to make product for Europe in Europe (alongside our Croatian factory) – the reality of the Brexit vote has meant we have done it with a bullet.

“Many of our staff still have uncertainties about what the Brexit deal will mean for them and continue to wait anxiously for this to be revealed.”

Has Lush jumped the gun?

Addleshaw Goddard employment group partner, Richard Yeomans, does not envisage a rush of businesses following Lush’s lead and believes most have adopted a “wait-and-see approach”.

“Maybe for a while Brexit will be used as the new weather – an excuse that retailers can use to justify what their business is doing”

Dan Murphy, Kurt Salmon

“I know we’ve been told that Brexit means Brexit but no one knows what that really means yet, nor do we know the extent to which free movement of people will stop. The problem is uncertainty. Lush had good underlying business reasons to take the decision now, but most are holding back for the time being,” he says.

Yeomans also points out that retailers are held to more stringent employment laws in some European countries that might disincentivise some businesses to move staff to other jurisdictions.

Kurt Salmon management consultancy partner Dan Murphy, is doubtful that the EU referendum was the sole motivation for Lush’s offer.

“Maybe for a while Brexit will be used as the new weather – an excuse that retailers can use to justify what their business is doing or how it is performing,” he says.

After Article 50

Lush has acted quicker than most, however, Yeomans expects other retailers to follow suit if there is still no certainty about EU nationals’ right to stay in the UK or freedom of movement after article 50 is triggered. ”Clearly the pressure will be greater on employers to consider relocating staff and getting premises ready in other EU member states. But right now I don’t think employers are feeling that pressure,” he says.

Lush may have moved early but responsible retailers should examine now how they can give European workers peace of mind in this hazy, post-Brexit world.