London Olympics will add huge revenues to retail

The London Olympics set to be held in 2012 are due to be worth an extraordinary £100million in extra revenues to the UK retail sector. A recent report suggests clothing and footwear are set to see the biggest rise in demand, with the

additional sales of 60million pounds expected in the third quarter of next year.

Research company, Verdict, which made the estimates, argues that although the boost to UK retailing will be equivalent to just 0.14 per cent of the overall sales during the quarter, the international sporting event still holds much potential for particular retailers.

Sarah Peters, Senior Analyst at Verdict, commented: “With so much media attention focused on London during the Olympic Games, a major marketing opportunity exists for UK retail brands.

“As so many UK retailers are trying to expand internationally to drive sales, any opportunity to sell their brand on an international scale cannot be ignored. The Olympics being in London will allow retailers to showcase their brands to the world media on a global scale.”

Despite the high profile nature of the Olympics, we do not expect it to have the same effect on retail as the royal wedding, mainly because it will have far less of an impact on the day-to-day lives of UK consumers,” Peters said.

Tourism will also be affected in a negative way during the Olympics, despite the number of international attendees of the event, as many global travellers avoid London due to a temporary increase in prices.

Certain sections of the retail industry will benefit more than others over the period, Verdict predicts, with fashion, sports and gift items doing the best.