World Cup dampening retail hopes

Friday 13 June 2014

Low expectations among consumers of England's success at the World Cup look set to dash hopes of a widespread retail bonanza - unless Saturday night brings a win against Italy, according to experts.

Retailers are in full swing to capitalise on the tournament with shelves heaving with everything from Brazilian food to huge televisions, with their efforts thwarted only by a lack of enthusiasm from shoppers, polls have found.

There is an "overarching low level of enthusiasm" about World Cup merchandise, according to a study by market researchers Conlumino on behalf of Webloyalty. Approximately 40% of people do not plan on watching, or will actively boycott, the event, the study found, while a separate report by analysts Mintel found 52% of Britons were supporting the England team.

Gareth Field, associate director at sport and sponsorship communications agency Pitch, said: "It's fair to say that response has been somewhat muted, on the part of retailers, marketers and consumers. The main reason is that the expectation of England winning the World Cup is at an all-time low. The fact that Roy Hodgson is playing down expectations every time he does a press conference is dampening down enthusiasm.

"Ultimately what happens on Saturday night if England beat Italy... that fervour is going to change dramatically."

Conlumino managing director Neil Saunders said: "I think the response from consumers has been relatively muted. Whilst people are enthusiastic about the tournament itself, they are not linking this to buying things as they may have done in the past. Retailers, especially supermarkets, have been fairly enthusiastic in their promotions and displays.

Overall, the World Cup will have a positive impact on spend but it won't be revolutionary. Supermarkets are the main winners, mostly because many are planning to watch the matches from home and will buy food, drink and snacks for the games. Off-licences and wine merchants will also see a boost."

He added: "I think sports retailers will see a more muted impact than normal. Many people are put off buying kit and shirts due to the high price points and perceived profiteering."

While 99% of people said replica shirts were too expensive, some 78% of people said they would not buy one anyway, Webloyalty found, and less than 2% planned on buying any other tournament or team themed clothing or accessories, such as scarves, posters, mugs, stickers or key rings.

UK retailers will see an average spend of £16 per head as a result of the tournament, with just over half of the population planning to follow the games at all compared to the three-quarters that tuned in for the 2010 games, the study revealed.