Shops and restaurants poised for consumer spending boost with labour win and major sports events
Retailers and the hospitality sector are gearing up for a significant boost in consumer spending as Labour’s recent election victory coincides with a major weekend of sporting events, including England’s Euro 2024 match and Andy Murray’s potential final appearance at Wimbledon.
Businesses across the UK are expected to benefit from a surge in consumer confidence following Keir Starmer’s election win, combined with the excitement generated by key sports events. Historical trends show that a change in government often stimulates economic activity, with previous post-election periods in 1997 and 2010 seeing upticks in consumer sentiment and retail spending, according to GlobalData and PwC research.
The upcoming weekend promises a spending bonanza, highlighted by England’s Euro 2024 quarter-final against Switzerland and a Wimbledon doubles match featuring Emma Raducanu and Andy Murray. GlobalData forecasts a £419.5 million economic boost from football fans alone, with 24.8 million Britons expected to watch the England match, many of whom will gather in pubs and bars.
Tesco anticipates strong sales in alcohol, predicting the sale of 3.5 million items of beer and cider, complemented by 1 million packs of sausages and 1.3 million punnets of strawberries. Fans are expected to consume 13.4 million pints in pubs as they support the Three Lions.
The celebratory atmosphere extends to searches for champagne, which have surged by 36% at Ocado, potentially driven by both hopeful Labour supporters and enthusiastic football fans.
Prior to the election, nearly 36% of consumers indicated they would be more confident in spending with a Labour victory, a sentiment even stronger among younger demographics. PwC’s senior retail adviser, Kien Tan, noted the positive outlook, stating, “July will get a bit of a halo effect,” referencing the current economic conditions and consumer confidence.
The Labour government’s anticipated policy shifts, such as cuts in national insurance and increases in the minimum wage and pensions, are expected to further bolster consumer spending. The retail and hospitality sectors are likely to outperform last year’s sales, which were dampened by poor weather and competition from popular films like Barbie and Oppenheimer.
Patrick O’Brien, research director at GlobalData, highlighted the renewed optimism in retail, particularly among younger consumers. The expected mini-boom also reflects a reaction to pre-election spending dips, with households delaying major purchases amidst uncertainty.
As the new government settles in and the weather improves, the UK’s retail and hospitality sectors are poised for a summer of robust spending, fuelled by political change and a thrilling sports calendar.
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Shops and restaurants poised for consumer spending boost with labour win and major sports events
