The London Olympics to be held in 2012 are set to be worth £100 million in extra revenues to the UK retail sector, a new report claims.
Clothing & footwear products are set to see the biggest rise in demand, with additional sales of £60 million expected in the third quarter of next year.
Research company Verdict, which made the estimates, argues that although the boost to UK retailing will be equivalent to just 0.14 per cent of the overall sales during the quarter, the international sporting event still holds much potential for particular retailers.
Sarah Peters, Senior Analyst at Verdict, commented: “With so much media attention focused on London during the Olympic Games, a major marketing opportunity exists for UK retail brands.
“As so many UK retailers are trying to expand internationally to drive sales, any opportunity to sell their brand on an international scale cannot be ignored. The Olympics being in London will allow retailers to showcase their brands to the world media on a global scale.”
April’s royal wedding celebrations increased retail revenues by around £500 million but Peters argues that unlike during the bank holiday weekend of the recent nuptials, it will be business as usual for most of Britain during the games.
“Despite the high profile nature of the Olympics, we do not expect it to have the same effect on retail as the royal wedding, mainly because it will have far less of an impact on the day-to-day lives of UK consumers,” Peters said.
Tourism will also be affected in a negative way during the Olympics, despite the number of international attendees of the event, as many global travellers avoid London due to a temporary increase in prices.
Certain sections of the retail industry will benefit more than others over the period, Verdict predicts, with fashion, sports and gift items doing the best.
Honor Westnedge, analyst at Verdict, estimated: “After clothing & footwear, sales of gifts and souvenirs and jewellery will experience the next biggest uplift (accounting for £21.7 million), followed by homewares, (£9.7 million), and food & grocery (£9.5 million).
“Spending on DIY & gardening, electricals, furniture and floor coverings, and health & beauty will account for the remaining £2.3 million.”