Worldcuponomics - How South Africa 2010 will boost Britain

The World Cup kicks off today and research suggests it will provide a much needed boost for a range of consumer-facing sectors.

The Centre for Retail Research predicts that the World Cup could will provide a potential cash injection of £987 million for the UK retail industry if England can survive the second round of the tournament. In addition, we could see a potential further £100 million spent in pubs and bars showing the event, which will all prove very helpful in the run up to the emergency Budget.

Should England defy the odds and actually win it, consumer spending could rise by as much as £2.01 billion by boosting retail sales in June by 4% up from £50.14 billion to £52.15 billion.

Justin Urquhart Stewart, a director at Seven Investment Management, points out that: ‘Someone has been able to establish, although I have no idea how, that every goal could be worth £126.3 million for UK retailers.’

He has analysed where exactly this being spent and perhaps unsurprisingly the largest area is food and drink with £250 million being splashed out on drink and £209 million on food by the end of round two.

‘This gorging could rise to £874 million if England does get to the final,’ he says.

Television and audio sales are also in for a boost. Open any paper and you will be hit by numerous offers for widescreen TVs and sales are predicted to account for 25% of World Cup spending, some £250 million, by the end of round two and could hit 30% or £620 million if England makes the final.

Tacky souvenir sales could reach £50 million, while overweight men and children will be snapping up £200 million of official sportswear.

Sales of barbecues and garden furniture are expected to top £28 million and these figures all rise again should England get to the final.

Apparently 20% of all world cup viewers will be in pubs, which will benefit to the tune of £305 million.

Betting companies look set to be the big winners though with punters expected to push up their revenues by £1.2 billion.

So what about the business impact?