Royal Wedding bank holiday effect on retail

The big bank holiday weekend extravaganza at the end of April is causing havoc amongst retailers across the nation. With the impending Royal wedding on Friday 29th April now counting as another ‘holiday’ just days after the long

Easter weekend, some are seeing an overload in sales and interest whilst many retailers are now worried the timing will result in a mass drop off in trade – the last thing needed in a bleak economy.

  Prime Minister, David Cameron, has made the day a national holiday to ‘allow everyone to celebrate,’ in hope that the feel good factor of an extra day off will offset any hits to the economy. And it will benefit leisure business’ such as hotels, pubs, restaurants who will be able to cash in on the flux of around 500,000 extra tourists. Whilst savvy Londoners are now putting their abodes up for rent as hotel rooms are overbooked and cashing in on rent prices up to exorbitant levels of around £2000 for a week.

The CRR (Centre for Retail Research) predicts the clear retail winners will be the food sector, with the festivities providing a massive boost to sells of champagne and good food. Sellers of wedding merchandise are also doing well out of the royal nuptials. For instance, the small northern England online site, theukgiftcompany, has taken orders of over £100,000. With a new huge level of interest from overseas – essential to small business’- as it is after all the first Royal Wedding of the Internet era.

Others faring well are discount retailers such as Asda providing cheap copies of wedding memorabilia. Take for instance £5 commemorative mugs and plates, Tesco’s version of the blue sapphire, Issa engagement dress and copies of the diamond ring(also worn by Princess Diana).

Analysts are, infact, predicting the day of the 29th will provide a boost of up to £1billion pounds to the economy,
largely through retail sales, hotel rooms and the
hospitality trade.

However many are sceptical about the effects a paid day off could have during an economic downturn.

Retailers are fearing that the now 4 bank holidays at the end of April will see the public taking long holidays – tour companies have gleefully announced a serge in bookings from Good Friday till the Monday after the wedding - or just staying in and glued to their TV screens for the big wedding spectacle.

Indeed the Federation of Small Business’, a lobby group, is deeply concerned of the effects this could have at a time of rising unemployment, inflation and government spending cuts. A chief spokesperson for the FSB said, ‘It will be a difficult time for a lot of small businesses that had been looking for improvement at Easter.’

Large high street chains such as Marks and Spencer and John Lewis have announced that they will not open until 1pm to allow staff to enjoy the momentous occasion, whilst many independent retailers are in two minds over what to do.

Head of Retail for small north London boutique, The Dressing Room, said ‘I feel this will be a very difficult month. Our customers tend to go away at Easter and I think they will now stretch it to up to a 3 week break. This could be a disaster for trade.’ She continues, ‘I can’t see the wedding having a positive effect on trade. We will probably be open but for reduced hours.’

There is also an issue over staff contracts for those who do intend to stay open for full hours. As in England and Wales there is no automatic right for employees to have a day off on a bank holiday – whether they can will be up to the discretion of their contract and employer.

Chris Simpson,Marketing director of Kelkoo, the online price comparison site, was more optimistic, ‘I think it's more about consumer sentiment. England as a country gets behind big events.’

He continues. ‘At a time when the headlines seem to be dominated by bad news, the nation is rightly seizing the opportunity to celebrate something positive.’