As Euro 2016 gets underway this week UK businesses are being told to expect a bumper summer of spending with at least £3 billion being predicted to be pumped back into the economy thanks to the football tournament and the Rio Olympics.
Food, drink, retail and betting businesses are all expected to feel the benefit as fans pack out pubs and splash out on alcohol, entertaining and, of course, TV’s to watch the big events.
Although the Rio Olympics is expected to encourage some spending, the difference in time zone is expected to contribute to smaller audience numbers, having a knock-on effect on consumerism.
The football, however, is expected to be a big hit with Carlsberg estimating that the tournament will be worth at least £60 million to the on-trade beer market. They’ve predicted that 12 million consumers will watch a match in a week.
£2.5 billion is thought to have been the contribution of the 2014 World Cup, where England went out at the group stage, to the UK in consumer spending.
With the British Isles being represented by four teams for the first time since 1958, industry analysts believe that the figure could be even higher in Euro 2016.
IHS chief European and UK economist Howard Archer told City A.M:
“The better that England tend to do, the better the [economic] impact. The earlier England are knocked out, the less inclined people are to buy any sort of souvenirs, if England get knocked out early you’ll probably find replica shirts in the bargain bin.
“And the more matches there are, the more there tends to be a boost like food and drink.
“There’s usually a lift to the sales of widescreen TVs because a lot of people have decided ‘I was going to get a new TV anyway so I’ll get it now to fully enjoy the football or the Olympics’.
“There’s also an impact on consumer confidence if the home nations do really well, there’s a bit of a feel good factor that can buoy consumption.”
Let’s hope action on the pitch will mirror the financial success that’s being predicted off it!