World Cup set to boost UK retail sales

World Cup set to boost UK retail sales

British Retail Consortium (BRC) and Verdict Research are both predicting a rise in retail sales during the World Cup season, which is according to Phil Duffy, Partner at corporate restructuring and insolvency experts MCR, good news for the sector.

Verdict Research is expecting total retail expenditure will increase by £1.3bn throughout June and July, particularly if England is successful in the tournament. This represents a 5.8% rise in total expenditure.

Phil Duffy commented: "While the growth of sales partly depends on how long the English team remains in the competition, the World Cup will have a noticeable effect on the retail and leisure sectors."

"Sales in bars and pubs will rocket while the games are on, and supermarkets will benefit from increased spending on groceries and alcohol by those watching at home," he continued. "However retailers need to be wary of having too much of certain stock in the event that the English team does not get through to the next rounds."

According to the BRC, increases in television purchases and World Cup merchandise have also contributed to a growth in sales. Furthermore BRC found a noticeable sale increase in the clothing and DIY markets due to the combination of warm weather and retail promotions in May. According to the BRC, UK retail sales increased by 0.8% last month when compared to April's results.

Phil commented: "This year we experienced economic uncertainty due to the election in May, making consumers cut back on spending in April. Improvements in sales this summer, however minor, are hopeful. While it remains a difficult time for the retail sector as a whole, there have been fewer casualties in 2010 as the weakest businesses have already collapsed."

Phil concluded: "The industry may not entirely be out of danger, but given its previous struggle to emerge from the recession, the figures indicate a positive step forward for the retail sector. While the World Cup only lasts a matter of weeks, the industry will certainly benefit from it. We can look forward to its contribution to the growth and prosperity of the sector."

About MCR
MCR was formed in April 2001 to offer turnaround, restructuring and insolvency services of outstanding quality to banks, lenders, business owners and individuals in the mid-market sector. It aims to provide the most practicable ways to resolve issues affecting business performance.

The firm has 13 partners who practice an ethos of high-level involvement to ensure that each assignment capitalises upon the expertise and knowledge of the whole team.

MCR regularly handles significant projects across a range of sectors and has been involved in a number of high profile cases. MCR is increasingly being asked to restructure businesses and find turnaround solutions to help companies avoid formal insolvency. Sectors include retail, financial services, property, manufacturing, printing, recruitment, hotels, leisure, e-commerce, automotive, telecommunications, music, entertainment and construction.

For more information, www.mcr.uk.com

For further information, please contact:
Richard Merrin/Luke Derbyshire
Spreckley Partners Limited

T: 0207 388 9988
E: merrin@spreckley.co.uk or derbyshire@spreckley.co.uk