Verdict, the retail analysts, forecasts that total retail spend during the tournament will increase by £1.3bn over last year. The equivalent boost during the 2006 tournament was £1.5bn. It believes the growth to be driven primarily by inflation, especially in food and grocery, rather than the tournament itself.
Joseph Robinson retail analyst at Verdict Research believes that the sector will be reliant on the success of the England team at the tournament. "Any potential fillip that the tournament provides will inevitably be heavily reliant on the successes of the English national team and the ensuing feel good factor that these generate," he said.
"However, the benefits will be far from blanket. Town centres are set to suffer from declining footfall, with department stores in particular being adversely affected as shoppers stay home for the games, and spend their money elsewhere," added Robinson.
£1.1bn extra is predicted to be spent on food and groceries during June and July 2010, which is an uplift of 5.2%, compared with 2009. In the alcoholic drinks sub-category, expenditure during June and July is set to grow by 7.2% (£164m) with grocers using alcohol as a key footfall driver.
The retail analysts have also warned electrical retailers not to expect a repeat of their good fortunes during 2006, when the demand for new technology was higher.
"Despite the emergence of 3D and LED televisions, this new technology has yet to reach mass market prices in the same way and many consumers have already purchased large flat-screen televisions. Moreover, there be will less inclination to make impulse purchases due to the poor state of the economy" said Robinson.
Verdict forecasts that expenditure on clothing and footwear will increase by 5.8% (£380m) during June and July with Sports Direct and JJB Sports likely to be the biggest beneficiaries, due to replica strips and other football paraphernalia.
Homewares, furniture and DIY are expected to suffer the most as interest and spend is directed elsewhere. The DIY retailer has stocked wheelbarrows featuring the St George's cross for the past few weeks as well as a World Cup Petunia Mix - red and white flowers, with 20,000 mixes sold.
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