Olympic Games 'Feel-Good Factor' Fails To Boost Retail Sales

Olympic Games Fails To Boost Sales Figures
Retailers failed to cash-in on the Olympics
Retailers failed to cash-in on the Olympics
Getty/PA

There might have been a "feel-good factor" surrounding the Olympic Games - but it didn't prompt consumers to part with extra pennies in the nation's shops.

As the country basked in the golden glow of Team GB's success, retailers were experiencing the sector's worst sales this year.

It turns out that consumers were simply too busy watching sport to indulge in shopping sprees.

Retail sales values were down by 0.4% on a like-for-like basis in August, the British Retail Consortium said, the lowest since November last year, when excluding April, which was heavily distorted by Easter timings.

The sporting event gave a mild boost to food sales in the form of party food and drink, the BRC said, but the net effect of the Games was minimal as lower footfall in London hit sales.

Stephen Robertson, director general of the BRC, which represents some 60% of retailers, said: "It's clear people were absorbed by the magnificent Olympics and had little interest in shopping, especially for major items."

The research will fuel fears over Britain's economic recovery as the country struggles to emerge from the longest double-dip recession since the fifties.

The most notable impact from the Olympics was felt online, which saw growth of 4.8% in August, the lowest since the BRC started collecting data on internet sales in October 2008.

Warmer weather in the middle of August helped boost sales of food, especially party snacks such as crisps, nuts and barbecue foods.

Clothing had an "unusual and rather disappointing" month, the BRC said, as womenswear retailers failed to attract customers to autumn/winter ranges.

Mr Robertson added: "As summer gives way to the all-important Christmas run-up, retailers will be hoping sales that didn't happen in August have been postponed and not lost entirely."

The CBI has already released a weak survey for August, which showed that the balance of retailers reporting that sales were up year-on-year was minus 3% in August, the weakest level since last April.

Howard Archer, chief UK and European economist at IHS Global Insight said, said retail sales may have also been limited by people avoiding the shops in London during the Games over fears of excessive congestion on the transport system.

He said: "Reinforcing belief that consumer spending is likely to be limited in the near term at least, consumer confidence remains mired near record low levels, amid elevated concerns over the economy.

"Indeed, even the 'feelgood factor' arising from the successful Olympic Games failed to lift consumer confidence in August, which is somewhat worrying."

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