The boss of JD Sports has warned Brexit red tape is costing it millions of pounds - with the chain now in talks to open a new distribution centre in Europe, instead of the UK.
Chairman Peter Cowgill said bureaucracy, red tape and delays in shipping goods to mainland Europe has meant the business is currently losing "double-digit millions".
As a result, he said the chain is considering a new distribution centre overseas - a move that would open up 1,000 jobs in Europe.
New UK-EU trade rules came into force on 1 January, introducing no tariff charges for items crossing the EU to UK border. However, products manufactured outside of the EU are subject to additional charges.
This is known as the 'rules of origin'. It states goods that are not from the UK or EU must pay tariffs when crossing the UK/EU Border.
Cowgill told the BBC's World at One that there is no true free trade with the EU, because goods that JD Sports imports from East Asia incur tariffs when they go to its stores across Europe.
He said: "I actually think it was not properly thought out. All the spin that was put on it about being free trade and free movement has not been the reality.
"The new system and red tape just slows down efficiency. The freedom of movement and obstacles are quite difficult at the moment. I don't see that regulatory paperwork easing much in the short term," Cowgill said.
He said a big warehouse distribution centre in mainland Europe "would make a lot of economic sense,".
It would employ 1,000 people - however all roles would be outside of the UK.
While JD Sports' existing warehouse in Rochdale would not close, "it would mean the transfer of a number of jobs into Europe," Cowgill said.
He also warned that the UK needed a complete overhaul of business rates and rents if the High Street was to survive. "It is basic economics," he said. "Bricks and mortar retailing is becoming uneconomic."
Cowgill also questioned the government's decision-making on non-essential store closures.
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He said supermarkets have been cashing in on clothing and homewares sales while shops have been shut.
"Some essential retailers have been making hay out of selling clothes, whilst clothing retailers have been closed. It is bizarre," he said.
