UK in line for £3bn sporting bonanza on back of Euro 2016 and Rio Olympics
The UK is on track for a £3bn economic boost brought about by Euro 2016 and the Rio Olympics which are both set to dominate this summer, according to economists.
Armchair fans are expected to oil food, drink, retail and betting businesses throughout both competitions as consumers open their wallets whilst supporting Team GB in Brazil and the home nations of England, Wales, Northern Ireland and the Republic of Ireland as they do battle in France.
Chief beneficiaries of this largesse are likely to be pubs, supermarkets and sports shops as fans stock up on beer, snacks and merchandise throughout June and July.
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," he continued. “And the more matches there are, the more there tends to be a boost like food and drink"
The analyst when on to claim that "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". He went on to claim that 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.”
Amongst those expecting a windfall is Carlsberg which anticipates earning as much as £60m as a direct result of 12m consumers hitting the pub to watch the daily diet of matches.