Retailers reeling from a slump in consumer spending are preparing to cash in on World Cup fever as fans rush to get kitted out for the month-long footballing gala.

Shopkeepers have started decorating their windows with red and white bunting and offering special World Cup promotions to entice patriotic spenders through the door.

The tournament in Germany is set to provide a £1.25 billion boost to the UK economy, according to business consultancy the Centre for Economics and Business Research (CEBR).

And there are signs the spending surge has already started.

Dixons and Currys, which have about a dozen shops in Sussex, are selling a flat-screen television every 15 seconds.

Smaller chains are also beginning to feel the benefits. Andy Sowton, at Steyning-based electrical retailer Ken Johnstone, said sales of LCD flatscreen televisions were up about 40 per cent in the last couple of weeks.

"We had a customer in the shop on Saturday who said he had had his current TV for four years and was replacing it now because of the World Cup - and that was typical.

"It helps that flat screens are coming down in price but the World Cup has given us a boost. We have put flags up in the store and we have a football-themed window display."

Other retailers rubbing their hands in anticipation are makers of replica shirts and supermarkets whose shelves are stocked with snacks and beer.

Pubs, clubs and off-licences could see their sales increase by £285 million, the equivalent of one per cent of annual revenues, if England make it to the semi-final, says CEBR.

Graham Boyd, owner of The Lord Nelson, in Brighton, said he would be decorating the pub with St George flags and holding World Cup sweepstakes for customers.

The pub already has one big screen. For matches involving England and other big teams there will be another in the covered courtyard area to the rear of the pub.

Mr Boyd said: "We should do well out of the World Cup. Because a lot of the games take place at 5pm people will not have time to get home to watch so they'll come straight here.

"In the later stages, when wives and girlfriends have got sick to the death of the football, we should get even more people through the door. And if we win it... well, it will be champagne all round."

The World Cup is also expected to provide a boost to the advertising industry with an additional £300 million spent on marketing campaigns during the tournament.

CEBR said some of this would be from sponsors seeking to capitalise on the event with World Cup branded marketing campaigns, while other firms would simply be looking to take advantage of increased television viewing to step up their campaigns.

The positive impact on the economy will be in contrast to the 2002 World Cup in South Korea and Japan, which had a negative impact, mainly because the time difference meant most matches were played during the working day, which adversely affected productivity.

Tuesday, May 16, 2006