England’s World Cup run could deliver a £7.6bn boost to the UK economy, with pubs, bars, restaurants and retailers enjoying a spending surge as millions of fans prepare to watch the Three Lions’ quarter-final clash against Norway.
An estimated 24.1 million people are expected to tune in for Saturday’s match, according to VoucherCodes.co.uk, making it one of the biggest television audiences of the tournament. The discount site predicts football fans will spend £385.5m during the game alone, the highest of any England match so far.
Hospitality is expected to be one of the biggest beneficiaries. Around 6.7 million people are forecast to head to pubs and bars to watch the game – almost double the 3.5 million who watched England’s victory over Mexico in licensed venues – with supporters expected to buy 9.3 million pints.
The spending is forecast to generate £64.7m in drinks sales and a further £40.4m on food, delivering a combined £105m windfall for hospitality businesses during the match.
Mark Williams, managing director at WorkJam, said England’s success had come at an ideal time.
He said: “England’s World Cup success couldn’t have come at a better time for Britain’s pubs, restaurants and retailers. Early signs suggest the tournament could deliver a £7.6 billion boost to the UK economy, with hospitality expected to be one of the biggest beneficiaries. If England keeps winning, that uplift could grow further still.”
However, he cautioned that businesses should not confuse the World Cup boost with a sustained recovery, warning that high operating costs and fragile consumer confidence continue to pose significant challenges despite the short-term uplift.
Retailers are also expected to benefit as 17.4 million people either host or attend watch parties. VoucherCodes estimates home-viewing spending will reach £280.3m, with most of the money going on food and drink after many fans had already stocked up on England merchandise and decorations earlier in the tournament.
The latest forecasts come after England’s victory over Mexico delivered an estimated £40m in revenue for pubs, bars and licensed venues across England, with more than six million pints sold, according to the Night Time Industries Association (NTIA).
Michael Kill, chief executive of the NTIA, said major sporting events continue to demonstrate the economic importance of the night-time economy, providing a vital boost for hospitality businesses at a time when many are still battling rising costs.
Payments data suggests the uplift has been widespread throughout England’s campaign. Visa said hospitality businesses recorded an almost 15 per cent increase in year-on-year spending during the group stage compared with equivalent weekdays and weekends last year.
Pubs recorded the strongest growth, with spending rising 30 per cent on match days, while restaurant spending increased by 5 per cent. Spending in pubs after 9pm jumped by 70 per cent as supporters stayed out to watch late kick-offs.
Separate analysis from payments company Dojo found spending at pubs and bars was already 17.3 per cent higher during the first two weeks of England’s World Cup campaign than in the preceding fortnight.
The World Cup’s impact is expected to extend well beyond pubs and restaurants. Novuna Finance estimates that a deep England run could generate between £75m and £150m in additional retail and home-viewing spending, rising to around £250m if the team reaches the final.
Theresa Lindsay, Novuna’s chief marketing officer, said late-night matches typically generate spending that spills into the following day, with consumers buying everything from breakfasts and coffees to takeaways and convenience items.
VoucherCodes estimates British consumers will spend around £3.8bn over the course of the tournament, with almost £494m expected to be spent during the quarter-final stage alone.
The Co-op says its stores are preparing for their biggest day for beer, lager and cider sales – with sales expected to be almost 50 per cent higher than the previous weekend and 20 per cent ahead of the current busiest day this year, when England took on Panama on 27 June.
Kate McCrae, Co-op’s operations director, said: “We’ve stocked our shelves and are ready.”
