Footfall at risk from football
Published: 11 June, 2010
Retail sales could suffer as a result of the football World Cup according to new research from King Sturge.
King Sturge’s research shows that monthly retail sales growth during the last 10 major football tournaments (World Cups and European Championships), from 1990 to 2008, has actually been lower than the annual average figure on six occasions.
King Sturge retail analyst Stephen Springham says: “Those who expect a significant and sustained uplift in retail sales are wide of the mark; the World Cup may actually depress retail sales. The argument is essentially footfall-related. When matches are played at peak times like Saturday afternoons, would-be shoppers will go to the pub or stay in and watch them on television. Local high streets and shopping centres become temporary deserts and retail sales suffer as a result.
“The massive feel-good factor of a World Cup is in reality restricted to a very few retail sub-sectors: beer and widescreen TVs predominantly, which are both low margin products, but also sportswear and football merchandise. Most other retail sectors see little or no benefit – in fact some may suffer, as the spend on TV and beer is merely substitutional.
In value terms, retail sales growth was strongest in June 1990 (up 7.5%) and June 1996 (up 7.0%). Both coincided with the national team’s strongest recent performances on the field, those semi-final appearances in Italia 90 and the fabled Euro 96 at home. Conversely, the lowest retail sales growth came in June 200ĺ0, coinciding with one of England’s most miserable showings.
