Retailers are hoping for a “shot in the arm” during the Rugby World Cup as consumers take advantage of increased spending power.

  • British families have an extra £18 a week to spend
  • Food and drink prices fall 2.4%, Asda Income Tracker adds
  • Asda boss Clarke says Rugby World Cup can provide “shot in the arm”

British families had an extra £18 a week to spend in August compared with a year ago, as the average UK household income jumped 10.7% to £191.

According to the Asda Income Tracker, food and drink prices fell 2.4% on the year, giving grocers hope that they can capitalise on the buzz of the Rugby World Cup and the increase in consumer spending power.

But leisure destinations including restaurants and bars are also expected to benefit during the six-week tournament as supporters from across the globe descend on the UK.

The Tracker said that fans hitting the road to attend matches would also find themselves carrying a bit of extra change, after the price of fuel dropped 12.9% on the year.

Fans watching the games from home might be tempted to splash out a new TV, after the price of big screens and sound bars fell 12.9%.

Increased saving

Asda boss Andy Clarke said: “Since the economic collapse there has been a shift in behaviour around spending versus saving and even though we’ve seen family’s spending power rise, households are choosing to save more money for a rainy day.

“Events such as this year’s Rugby World Cup provide economies with a shot in the arm and supporters visiting from across the world will be pleased to see that a fall in the rate of inflation across travel, hotel, sports equipment and restaurant are all contributing to an increase in disposable income.”

Cebr economist Sam Alderson added: “In the wake of the global headwinds emanating from the slowdown in the Chinese economy, further evidence of strong growth in family spending power is welcome news for the UK economy.

“Even though Christmas is fast approaching, with wages rising at rates well above inflation, households are in a great position to enjoy the autumn months and events such as the Rugby World Cup.”

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