Mini-heatwave and Euros give hospitality hope for spending bump
The so-called mini-heatwave across the UK this week could give a boost to hospitality, as Brits enjoy the sunshine and splash the cash.
Leading figures in retail have said the warmer weather, in addition to the Euros, could give a welcome boost to the sector, after a damp June.
GfK’s overall consumer confidence measure increased by three points in June to hit -14, the third consecutive month of improvement.
Last week it was reported that UK retail sales rebounded last month, after a rainy April saw a slump in high street spending.
With the Met Office issuing weather warnings, and temperatures set to rise above 28C this week, Kris Hamer, director of insight at the British Retail Consortium, said: “The mini-heatwave this week will hopefully put consumers in the mood to spend a little more this week.”
Hamer went on: “As people enjoy the sunshine, we anticipate some extra spending on cold drinks, ice cream and BBQs. Meanwhile, the temperatures will likely help purchases of summer wear and electric fans.
“Retail could be further boosted by success in England’s final game of the Euro 24 group stages. Indeed, every goal that takes England closer to the final, means more spending on snacks, TVs and merchandise.”
Kate Nicholls, chief executive of UKHospitality, said: “The weather often plays an important role in people’s decision making and the current spell of warm weather will be a welcome boost for hospitality venues across the country, with people keen to get out and make the most of the sunshine.
“Hospitality is a key driver of growth for the UK economy, and in any weather, the sector has something to offer. Businesses across the sector will be hoping for a strong summer to offset the impact of the ever-rising cost burden that they are facing.
“Come rain or shine, I’d encourage everyone to support their local hospitality businesses.”
Muniya Barua, deputy chief executive at BusinessLDN, said: “Firms across the retail, leisure and hospitality sectors will be hoping for a boost from the warm weather this week, especially as it coincides with England’s Euros fixtures.”
“The next Government can deliver a further boost by reviewing the impact of the tourist tax on the economy and agreeing a multi-year funding deal for Transport for London to keep the city moving.”
UKHospitality added that the Euros group stage could give a boost of £340m in increased sales, and up to £800m if they reached the final.