Word Cup fever is set to serve up a multi-million-pound boost to Scotland’s retail and hospitality sectors, industry analysts said yesterday.
The Scottish Retail Consortium (SRC) said an extra £700m of sales was generated in UK shops during the 2010 tournament in South Africa and a similar uplift was expected from the Brazil showpiece, which kicks-off tonight.
Professional services firm PwC said the fact that Scotland wasn’t taking part the country last qualified for the World Cup finals in France ’98 did not dent enthusiasm for the tournament, and pubs, restaurants and shops were likely to benefit over the coming month.
“If past experience is any guide then this summer’s major sporting events such as the World Cup, Commonwealth Games and golf’s Ryder Cup could provide a welcome fillip to the retail industry,” SRC director David Lonsdale said.
“The previous World Cup reportedly generated an extra £700 million of retail sales across the UK.
“Some retailers are set to benefit more than others, including those selling sporting or electrical goods, food and drink, or souvenirs.
“This is timely as a broad range of indicators crucial to the health of Scotland’s retail industry have begun to point in a favourable direction of late, and hopefully this summer’s major sporting events will contribute further to the growth of the sector which is, after all, the country’s largest private-sector employer.”
Analysis by PwC found that food sales rose 3% during Euro 2012 and beer sales increased 2.9% during the South Africa tournament equivalent to six million extra pints.
Susie Simpson, tax director in PwC’s private business team in Scotland, said: “Scots love their sport, and in particular football, so it is perhaps no real surprise to see food and drink sales in shops, pubs and restaurants boosted during significant events such as the European Championships and World Cup.
“Despite the lack of Scottish presence in the latter, if you add in the Commonwealth Games and the Ryder Cup on home turf this summer along with the possibility of some sunnier weather we could see our retail and food and drink sectors enjoying one of their busiest periods in recent years.
“During previous sporting campaigns the drinks industry, in particular, was subject to stringent taxes.
“It is hoped that the Government’s 1p cut on beer duty in the latest budget, as well as a freeze in the escalator for wine and spirits and duty on cider, will give them an extra confidence boost in the months ahead.”