Can a bumper summer of sport boost retail spend?

Both the men’s European Football Championship and the Olympics occur every four years, creating a buzz across the UK as the country watches from home, at work or in the pub. 

For retailers, the tournaments offer a chance to run promotions and highlight new products over the summer period (the Euros air from June 14 to July 14 and the Olympics from July 26 to August 11). 

In 2021, when the men’s Euros and the Olympics last took place, the UK was still reeling from the impact of the Covid pandemic but that didn’t stop the country from shopping.

According to the BRC-KPMG Retail Sales Monitor, UK retail sales increased by 17% on a like-for-like basis in June 2021 compared with June 2019 as the Euros “provided a boost for TVs, snack food and beer”.

July 2021 also brought an 11.6% increase in consumer spending compared with the pre-pandemic levels of July 2019 as supermarkets, the entertainment industry and hospitality enjoyed “booming trade” as a result of the Euros and the Olympic Games, Barclaycard reported.

This time there are no trading restrictions and inflation, which has hit consumer spending power, is finally trending downwards. So what can the retail industry hope for from the summer of sport?

Ready for kick-off 

It is anticipated that sportswear retailers will benefit from a boost in footfall, sales and online traffic, especially with big names such as Adidas sponsoring the Euros and Decathlon sponsoring the Olympics.

JD Sports chief executive Régis Schultz says such events create “interest” in sportswear, with England and Scotland team shirts both on sale.

“We believe that Q2, and especially the second half of the year, should see some innovation coming and we should benefit from the big sporting events that will happen this summer with the Euros and the Olympic Games,” he says.

The combination of two major sporting events is likely to be felt beyond sports-related retail. There should also be a strengthening of sales for products such as TVs, speakers, and food and drink according to British Retail Consortium economist Harvir Dhillon.

He says: “While consumers are still spending carefully, faster real wage growth, lower energy bills and improving confidence could still offer a positive outlook for summer spend.”

During the last male Euros tournament in 2021, Kantar Worldpanel data showed that £1.2bn was spent on alcohol over the four weeks to mid-July, an increase of 24% compared with the same period in 2019, while crisps and snacks sales grew by 23% compared with 2019.

Although the Euros won’t kick off until June, Marks & Spencer’s ‘Eat Well, Play Well’ partnership with the home nations means the retailer is well-placed for increased food sales.

It has also teamed up with collectible company Panini to offer exclusive sticker albums for £3. When shoppers spend £20 in an M&S food hall, they can also claim a free pack of four stickers.

Hoping to generate sales from TVs, Currys has launched tongue-in-cheek adverts showing staff turning away from the football to focus on providing quality customer service. 

Senior advertising manager Martin Burke describes the ads as “driving brand consideration ahead of what is set to be an extravaganza of sport this summer”.

Is it coming home?

As the summer season nears, retailers may want to focus on the Euros more than the Olympics.

Data from Kantar Media revealed that 3.1 million people will invite friends over and buy food and drink specifically for the Euros – far more than for the Olympics and the Paralympics combined.

This figure reflects what was seen during the summer of 2021. During the Tokyo Olympics, peak UK viewing figures fell to 5 million, while the final match of the Euros drew in a UK TV audience of 31 million – although England did reach the final, which probably had an impact.

A GlobalData survey showed that of those watching the Euros last time, 74% bought food and drink, 41% bought clothing and merchandise, and 36% bought decorations and electricals.

The Olympics told a different story: a forward-looking survey in 2021 showed only 23% of consumers said they would buy food and drink for the event and 13% would buy clothing.

During the last Euros, GlobalData retail analyst Tash Van Boxel says that Tesco was the “go-to-destination” for food, drink, clothing and merchandise, while Amazon was the main choice for decorations.

She expects grocers to perform well again this year, but says Tesco will “come under pressure from discounters” such as Aldi, Lidl and B&M because price is still a concern for consumers.

“While consumers watch the sporting event, this does not necessarily translate to increased spending on retail, especially non-food retail,” she says.

“As the Euros will be occurring in Germany and the Olympics in France, some consumers may travel to Europe, taking their spend abroad.”

Van Boxel adds that spending is “likely to be boosted” if England and Scotland do well in the Euros.

Viewership and spending both grew over the last few men’s and women’s Euros and World Cups as England progressed further in the tournaments.

It remains to be seen what a summer packed with sport can do for the UK retail sector this summer, data that will no doubt prove valuable in four years’ time when the UK and Ireland become the host for the next men’s Euros.