Setting up shop in the UK: Creating a successful retail operation beyond the lease

Entering the UK market is an exciting move, but as highlighted in “Setting up shop in the UK: top tips for international retailers taking leases of stores”, negotiating and securing a store lease is just the beginning.

To ensure a smooth transition from legal to operational, all brands (whether international or UK based) should also consider a variety of other legal, commercial, and practical issues. This article expands on what we think those key considerations look like in practice:

Operational licences and regulatory approvals

While the lease agreement covers the physical space, it won’t cover the need for operational licences. These are typically handled alongside—but separately from—the lease process. Depending on a store’s offering, a brand may require:

• A licence to sell alcohol,
• A pavement or seating area licence for customer use outside the store,
• A licence to play recorded or live music on premises.

These licences are not automatically granted with the lease and must be applied for directly with the relevant local authorities. It’s advisable to begin these applications early to avoid delays to launch.

Insurance

Standard insurance policies such as contents and public liability insurance are a given. However, make sure you’ve also thought about:

• Business interruption or loss of business insurance, which can provide critical coverage in cases of unexpected closures or disruption.
• Employer liability insurance, a legal requirement in the UK for any business that employs staff.

A comprehensive insurance review will help mitigate risk and protect your investment from day one.

Employees

Hiring staff is often one of the final steps before opening day, but preparing for this in advance is key. Brands will need to consider:

• Whether standardised employment contracts are ready for any UK hires,
• The readiness of employee handbooks and workplace policies, tailored to UK employment law,
• Whether they need to register with HMRC as an employer,
• Having a dedicated team appointed who will handle ongoing HR and employment issues internally or externally.

Our employment law colleagues at Cripps can support in drafting compliant documentation and policies, helping ensure a smooth onboarding process.

Signing authority: Avoiding last-minute delays

Even if the UK entity is already registered, it’s important to think about the basics such as who is authorised to sign legal documents on behalf of the business. We often see that international brands have one directors of the company who is based overseas which can cause a bottleneck when documents need signing or approvals are required.

To get ahead of this early, it is possible to set up a Power of Attorney (POA) in favour of other key personnel within the business so that they can help keep the process moving efficiently.

Outsourcing key store functions

Day-to-day store management involves various third-party services such as:

• Cleaning,
• Security,
• Waste disposal.

Outsourcing these functions can streamline operations, but each contract should be carefully reviewed to protect the business and ensure service quality. Our commercial team can assist in drafting or reviewing these agreements to ensure your interests are well protected.

Digital and online compliance

With many UK consumers choosing to shop online—even for brands with a strong physical presence—it’s important to ensure your website and e-commerce infrastructure comply with UK standards. Key considerations include:

• Accurate returns and refund policies,
• Compliance with UK consumer protection laws,
• Accessibility and data protection (GDPR) compliance.

If updates are needed to your digital terms and policies, our commercial colleagues are well placed to help.

Final thoughts

While negotiations of the legal documents is a critical first step, it’s the operational readiness and compliance that ensures your UK launch is smooth, compliant, and commercially effective. From licences to HR, insurance to outsourcing, each component plays a vital role in building a successful UK retail operation.

How we can help

At Cripps, we work hand in hand with international retailers to deliver a fully integrated approach—covering real estate, employment, commercial contracts, and digital compliance. With the right preparation and team in place, your brand will be well-positioned to thrive in the UK market. Do get in touch if you would like for us to help with advising on any of the above.