England World Cup success could boost sports retail by £360m

England World Cup success could boost sports retail by £360m

By: Jeff James

Listed Under: News

Published: Thursday, June 03, 2010

Spending on sportswear in the UK will increase by £200million if England reach the quarter-finals of the World Cup - rising to £360million if they reach the final.

That’s the findings of a new report commissioned by shopping comparison website Kelkoo and conducted by the Centre for Retail Research.

UK retail sales are projected to rise by £987million if England survives the second round of the competition, with a further £110million expected to be spent in pubs, clubs and cafés.

Total retail sales would increase by £692million to £2.01billion if England won the World Cup.

“The World Cup is the largest sporting event in the world, second only to the Olympic Games,” says Bruce Fair, managing director of Kelkoo UK.

“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 715million people worldwide and it is estimated that the 2006 World Cup increased UK retail sales by £1.25billion.

“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 per cent GDP growth.”

Online spending is also expected to perform well during the tournament, with internet sales expected to reach £116million by the end of round two, increasing to £205million if England make it to the final – equivalent to 10.2 per cent of total World Cup retail sales.

Says Fair: “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 confidence and ultimately drive economic growth.”