Press Release

LRC comment and brief: What will the Olympics mean to Retail?

London Retail Consortium (LRC) spokesperson, commented:

"The LRC are delighted with the news. Having the Olympic games in London is sure to generate a lot of excitement and a certain 'feel good factor'. Retailers generally benefit from this feel good factor as it usually means people have a positive attitude towards everything - including spending their money.

"Naturally, retailers in the Capital would benefit most and such an increase in visitors to London would in itself boost sales and general activity on the high street. But often, the feel good factor that comes with a high profile sporting event like this, can be good news for retailers all over the Country, not just in London."

How much extra is the Olympics likely to generate for the retail sector?

Looking at Euro 2004 as an example...

Euro 2004 generated approximately an extra £200 million for the retail sector as a whole - an extra £80 million a week. (Based on BRC Retail Sales Monitor data)

This total incorporates the 'feel good factor' that boosts sales and activity generally and also increases in sales of food, drink, flags, t-shirts, souvenirs etc. The majority (£160mn) is from food and drink sales.

Looking at Capital Economics figures...

The Olympic games is likely to generate an extra £521 million to the retail sector.

Capital Economics say that hosting Olympics will boost economic output by £9.3 billion. Retail accounts for 5.6% GVA =  £521 million extra for the retail sector.

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