It’s going to be a right old royal knees up!

April 22, 2011

The Retail Inspector – High-Street-1

Surveys show that the Royal Wedding will be hugely profitable for retailers, as many consumers have indicated that they too will be celebrating.

Those patriotic enough to celebrate will flock to buy Union Jack flags, bunting and party equipment so they too can feel part of the occasion.

As well as this, retailers can expect to see an increase in food and drink sales as well as memorabilia to remember what will be an historical event.

One survey of 2,000 adults, carried out by Moneysupermarket, the price comparison site, found that 34pc of us would celebrate in some way, spending an average of around £29 per person.

They estimated that around £480m would be added to the economy thanks to the Royal Wedding, through celebratory sales.

Another survey carried out bythe  retail consultancy, The Centre for Retail Research, have made an estimate that the retail gain could be in the region of £527m.

They have predicted that consumers will spend £156.5m on food and drink, with the remaining £370m to likely come from the extra bank holiday, the influx of tourists looking to witness the marriage, as well as memorabilia sales.

The Centre for Retail Research survey, have estimated that ½ million bottles of bubbly will be sold, 3.5 million commemorative mugs and pottery, 5 million coins and tokens, 360,000 additional tourists, and truck-loads of flags.

They also estimate that the biggest sellers will be souvenirs including tea towels, trays, tea caddies, models and flags – totalling £26.9m

This is all good news from retailers, who you would expect to jump on the Royal Wedding bandwagon to add a little bit more cash flow. Richard Lim, economist at the British Retail Consortium had this to say: “With customers under pressure and retail sales falling dramatically, the wedding and the extra day off will give a useful boost to the national mood and to retail sales.

“Given the rising demands on household budgets, this survey shows a surprisingly strong willingness to spend on food, drink and memorabilia. And the extra shopping opportunity provided by the additional Bank Holiday will even help sales of things like DIY and garden goods, unrelated to the event.

So the Royal Wedding is music to retailer’s ears, it’s a chance to put right to some disastrous turnovers – so stock up on Will & Kate tea towels, or miss out!

In other news…

I know it might be getting a bit boring now, but I’ve got to mention the latest in the Burberry saga.

Earlier this week they announced a growth in sales over the past 6 months, of almost a third!

Considering some retailers, without mentioning names, are finding themselves in troublesome times. The London-based fashion retailer has done very well in such a difficult period for retail.

Establishing themselves in China has played a pivotal role in Burberry’s success, but it begs the question; why haven’t other retailers gambled on breaking into such a growing market?

As well as this, Burberry look to gain from the Olympics in London next year, so expect to see a fair few more beige tartan caps knocking about!