Retailers to benefit from £1.3bn in extra sales if England reach World Cup second round
A report by Vouchercodes.co.uk is predicting that over 23 million people in the UK are likely to go on a World Cup spending spree, purchasing souvenirs or sportswear, new televisions or celebrating at home or down the pub. The report forecasts that each fan is expected to spend £56 on retail and leisure, but if England make it to the final this will double to £112.
While England may not be expected to win the tournament the report forecasts that every goal scored by the England team will be worth £165.3 million for the UK’s retailers.
Supermarkets are predicted to take a lion’s share if England emerges from the Group stage with shoppers spending £508 million on food and drink to be eaten at home, including £280 million on drinks.
Should England make it through to the final fans are expected to spend over £1 billion on drinks and food up to the final. Home and garden retailers can also expect to benefit from fans celebrating at home in the sun, with spending expected to reach £34 million if England make the second stage, rising to £56 million if the team reach the final.
Vouchercodes is predicting that TV and electrical retailers will have a smaller boost in spending than during the 2010 World Cup, down 23.4% at final stage. While consumers are likely to buy thin LED TVs with bigger screens in 2014, Vouchercodes said the lack of a ‘must have’ technology out this year means that spending will not reach the same level as in 2010.
Claire Davenport, managing director, VoucherCodes.co.uk said: “The World Cup is going to be the biggest retail event in 2014, providing an expected £1.3 billion boost for UK retailers, pubs and clubs. With 23 million fans expected to celebrate England’s successes by heading to the pub, upgrading to the latest TV, or buying England memorabilia, the retail industry should think ahead and help fans by providing tailored World Cup deals and discounts.
“Since the last World Cup, we’ve seen the UK come out of recession, unemployment drop month-on-month this year and estimates the GDP will grow by 3.1% in 2014. This, coupled with consumer confidence at its highest peak since September 2007, has impacted on the feel-good factor of England’s fans this summer – which can only be good news for our retailers, pubs and restaurants.”
The report also predicts that online retailers are expected to perform very well during the World Cup, with an additional £174.71 million of online spending expected by the second stage, increasing 110% to £367.49 million should England be finalists. Mobile sales are expected to make up 21.5% of online sales, with a total value of £38 million at second stage and £79 million if England are finalists.
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