England’s penalty shootout victory against Colombia has given the UK economy a £1.33bn boost according to new figures.
The figures from the Centre for Retail Research (CRR) show that the UK will benefit from a £2.72bn boost if England make the final.
It is thought that the majority of the surge is down to those stocking up on alcohol and snacks before watching the matches at home. However pubs, restaurants, cafes and clubs are set to benefit the most from England’s good form, with £193m spent increasing up to £488m if England reach the final.
So far the CCR said around £800m more had been spent in comparison to the last World Cup where England crashed out in the group stage.
Professor Joshua Bamfield, director of CCR, said: “At the last World Cup we didn’t get past the group stage and from a retail point of view sales fell off a cliff. This time no one expected much – they were so used to being kicked in the teeth – but once they started playing it all changed.
“The spending patterns also fit in with the current retail theme of ‘experience’. People want to spend their money going to the pub or having a barbecue with their friend and watching the match.”
Bamfield said major sporting events such as the world cup give consumers a reason to purchase large electronic items such as a new television. He said: “People may have been meaning to get a new TV or computer for some time and the World Cup gives them the opportunity to make the decision,” he said.
“Also, people are buying souvenirs, parents and grandparents are using the competition as a reason to buy kit for children.”
Andy Haldane, chief economist at the Bank of England said World Cup success was helping with the recovery of the UK economy. He said: “The underlying picture now appears to be one of gently rising household spending. And then, of course, there is the World Cup. Without wishing to tempt fate, England’s recent sporting success on the football field has probably added to that feelgood factor among England-supporting consumers.”