Will the World Cup ben­e­fit re­tail­ers?

The Peterborough Evening Telegraph - - Et Business -

IT’S that time again. Ev­ery four years we’re in­fected with World Cup fever as a wave of pa­tri­o­tism sweeps our nation. Even David Cameron has an­nounced that Down­ing Street will fly the flag for Eng­land!

So now that the tour­na­ment has kicked off, our su­per­mar­kets, web­sites and shops are all com­pet­ing to get in on the ac­tion, but will it ben­e­fit ev­ery­one?

Ac­cord­ing to polls, UK re­tail ex­pen­di­ture is ex­pected to re­ceive a £1.3 bil­lion boost dur­ing this sum­mer’sWorld Cup in South Africa, so that’s the good news. But the bad news is that the up­lift will only be in cer­tain re­tail sub­sec­tors and it goes with­out say­ing that this in­crease in sales re­lies upon the suc­cess of the Eng­land team at the tour­na­ment and the en­su­ing feel­good fac­tor this gen­er­ates. So, I guess there’ll be a few fin­gers and toes crossed over the next few weeks.

Un­fair as it might seem, the ben­e­fits of the World Cup aren’t evenly spread. Town cen­tres will mostly suf­fer from de­clin­ing foot­fall, with depart­ment stores in par­tic­u­lar be­ing the worst af­fected as shop­pers stay home for the games and spend their money else­where (al­though per­son­ally, we al­ways see a surge in foot­ball wid­ows en­joy­ing the quiet aisles dur­ing games).

There’ll be ex­tra money spent on food and drink, so our su­per­mar­kets are the big win­ners here as peo­ple have their World Cup par­ties – bar­be­cue sales are soar­ing! Most su­per­mar­kets are us­ing al­co­hol sales as a way to in­crease foot­fall, but of course they’re cut­ting their mar­gins to do so.

TVs are an­other big spend area, with re­tail­ers such as Curry’s of­fer­ing money back for ev­ery goal Eng­land scores! In the 2006 tour­na­ment, the new flat screenTVs made elec­tri­cal re­tail­ers a lot of money, but de­spite the emer­gence of 3D & LED tele­vi­sions these are still not mass mar­ket enough for im­pulse pur­chases given the poor state of the econ­omy. Still, there’s enough hype to keep elec­tri­cal re­tail­ers very happy.

Re­tail­ers like Sains­bury are of­fer­ing their staff World Cup hours, which is one way to cut down on ab­sen­teeism. While M&S has the World Cup win­ners from 1966 as the front men for their ad cam­paign which is a nice touch. Al­though my favourite prod­uct is still the B&Q World Cup gar­den gnome – it’s one of those things you never knew you wanted till you saw it – trust me!

Ex­cite­ment over the World Cup and bet­ter weather boosted high street sales last month, but gen­er­ally con­sumers are still watch­ing their spend­ing and wait­ing to see if they’ll be af­fected by the cuts that our new govern­ment is mak­ing clear are go­ing to im­pact us all.

So we’re talk­ing about a pro­longed pe­riod of yet more un­cer­tainty for busi­ness own­ers.The BRC is pro­mot­ing cuts in spend­ing, not tax or VAT in­creases. An­a­lysts pre­dict that rais­ing the VAT rate to 20 per cent would raise about £11.5 bil­lion a year for the nation’s fi­nances which must surely be tempt­ing them.

So, while you could never call me a foot­ball fan, I was in­spired by the en­thu­si­asm and pride of the South African peo­ple at the open­ing cer­e­mony and the games since, and that’s some­thing I wish we saw more of here in the UK and es­pe­cially in Peter­bor­ough.

Our new foun­tains were re­cently un­veiled in Cathe­dral Square and while they’ve had their de­trac­tors I, for one, think they were worth the wait. We have a great view of them from our shop and since their un­veil­ing, they’ve brought a wel­come feel­good fac­tor to the city cen­tre.

So, Waku Waku ! – Lets en­joy the spirit of the World Cup!

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.