Firms step up workaround plans to face Brexit threat

Distribution centre: A Clarks shoe shop in west London. C&J Clarks Ltd, the seller of Clarks shoes, plans to open a distribution centre in continental Europe. — Reuters

LONDON: Companies facing the potential threat of tariffs and other trade barriers after Brexit are stepping up contingency planning, with some retailers creating new sites in continental Europe to avoid snags.

US pharmaceutical giant Merck & Co is planning for the possibility of a temporary supply blackout when the UK leaves the European Union and may stockpile as much as six months worth of goods and revise trade routes in preparation, according to a person familiar with the matter.