World Cup could generate over GBP 1bn to UK retailers

FootFall predicts that if the World Cup sees the increased shopper numbers witnessed during Euro 2004, then retailers could score a much-needed boost to their profits during the tournament. According to FootFall's figures as was quoted in The Retail Bulletin, consumers gripped by football-fever during Euro 2004 caused week-on-week rises in retail footfall of up to 10.8% before England matches. The feel-good factor of the England football team's success boosted consumer confidence and saw shoppers, usually inhibited by debt and personal finance issues, throwing caution to the wind and racing out to the high street to celebrate.

Natasha Burton, a spokesperson for FootFall said "The retail sector has been in decline since July 2005 and apart from a few short-lived highs around calendar events such as Valentine's Day and Easter there has been no real sign of a permanent upturn yet.

"However, after studying the effects on retail of previous high-profile sporting events such as Euro 2004, we see the World Cup as a real opportunity for the retail sector to change its fortunes. While retailers saw drops in footfall of up to -5.3% during the key England matches of Euro 2004, the massive increases in shopper numbers in the days running up to each game more than covered the losses.

"We would expect to see consumers following the same shopping patterns this year. Major sporting events traditionally see an increase in demand for big ticket items such as flat-screen TVs or home entertainment systems as fans upgrade to enhance their viewing experience. Sales of 'impulse' food and drink products, such as beer and BBQ food, are also likely to increase as eager fans stock up for game-watching parties.

"Retailers can also capitalise on the goodwill and 'carnival atmosphere' surrounding the World Cup by creating a buzz in-store with branded merchandise or football-related promotions, offers, incentives and events, all of which will provide a great platform to launch their new summer product ranges. Recent research showed that consumers will not look kindly on promotions by companies that have no obvious connection to the World Cup*, but as long as retailers ensure they establish a clear link to the tournament itself, or to their customers enjoyment of it, they should benefit.

"The latest reports suggest that the World Cup could inject as much as £1.25bn into the UK economy, and with a well-planned tactical approach retailers have a chance to take a substantial share of those rewards. We would expect to see momentum continue throughout the tournament and the closer we get to the finals the higher the 'feel good' factor amongst consumers should be, so it's fingers-crossed for the England team and fingers-crossed for UK retailers!"