Recent research by Kelkoo has revealed that should England progress through the initial group stages of the World Cup finals in South Africa, every goal the team score thereafter would be worth £126 million to the UK retail industry.
The report suggests that should England make it through to the World Cup final, consumer spending could rise by as much as £2.01 billion, boosting total retail sales for June and July by 4% from £50.14bn to £52.15bn.
Just by reaching the group stages of the finals it is estimated that UK retailers will benefit to the tune of £168 million, spent on sportswear and official football kits.
A further £190 million will be spent on upgrading television sets to HD or the latest 3D technology, while garden furniture and barbeque’s will rake in another £22 million.
Should England progress to the final, it is predicted that English fans will continue to spend throughout, resulting in £360 million on sportswear, £620 million in electrical stores and £62 million spent on garden furniture.
The Kelkoo figures have been compiled from analysis of the impact of the 2006 World Cup, trade estimates and past research reports.
UK retail sales are projected to rise by £987 million if England survives the second round of the competition, with a further £110 million expected to be spent in pubs, clubs and cafes. England’s participation in the quarter finals would bump up sales by an additional £332 million, and if the team reaches the final, total retail sales would increase by £692 million – a potential £2.01 billion in incremental spend if England won the World Cup.
With football fans flocking to watch the matches in public venues, a place in the final would also see pubs, clubs and cafes benefit to the tune of £305 million. Finally, betting companies are tipped to receive a boost of £1.2 billion in additional revenues.
The biggest single area of World Cup expenditure for consumers will be on food and drink. Shoppers will spend £250 million on drinks (including non-alcoholic ones) and £209 million on food by the end of round two, together accounting for 46.5% or £459 million of all retail spending. However, if England get through to the final this figure could rise to total £874 million.
Bruce Fair, Managing Director of Kelkoo UK, comments:
“The World Cup is the largest sporting event in the world, second only to the Olympic Games. As a result of its mass appeal and viewership figures, it has natural implications for consumer spending and retail businesses. The last final was viewed by 715 million people worldwide and it is estimated that the 2006 World Cup increased UK retail sales by £1.25bn. In addition, experts argue that success in the World Cup affects more than a country’s retail and leisure sales; it can also increase the country’s rate of economic growth, have a positive impact on consumer confidence, and ultimately winning the World Cup could result in 0.7% GDP growth.
The World Cup is not just a lucrative event for pubs and bars, online and high street retailers will reap the benefits as well. The event will provide a welcome boost to retailers with the UK’s passion for football prompting a rapid rise in spectator and sports-related purchases. England’s progress through the tournament is therefore likely to reinvigorate sales in the retail sector, stimulate consumer confidence and ultimately drive economic growth.”
So with all that spending to do why not visit Kelkoo’s World Cup Buying Guide
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