The proportion of store groups expecting a boost from the London 2012 Olympics has more than doubled since last summer.
84% of big retailers expect an increase in demand on the back of the sporting spectacular, compared with 38% in May last year, a survey found.
The majority (62%) of retailers responding to Deloitte’s Game’s Readiness survey said that they will launch new or improved marketing campaigns, and 28% plan to increase stock levels to capitalise on the expected uptick in demand.
Sports retailers are expected to benefit from a surge of interest, while electricals groups are expected to see an uplift in TVs and supermarkets a boost in party food.
Some store groups are intimately linked to the Games. Next is the official clothing and homewares supplier, and John Lewis is a sponsor. Sainsbury’s boss Justin King is an Olympics adviser to London Mayor Boris Johnson.
There have been fears that the Olympics will actually reduce the number of tourists in London as they steer clear of the crowds. That would hit the West End of London in particular, as it relies heavily on tourist spend.
While retailers seem to be increasingly hopeful that London 2012 will drive sales, they are concerned about disruption to their businesses. Staff unavailability is the biggest worry. Security and transport are also concerns.
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