Football fans are not the only ones who want England to succeed at the World Cup which kicks off on Friday. Many local businesses are hoping that progress on the field will be matched by a boost in sales and the numbers of people using their services.
Manchester-based businesses are gearing up to the start of the competition knowing that the month ahead could prove to be a success or a failure for their own operations. From restaurants to retail outlets, all are transfixed as to how the tournament unfolds.
Research has been undertaken into the correlations between England games and the FTSE 100 and their findings are remarkable in that the index rises or falls depending on how the team did the night before.
The reason for this astonishing effect can be put down to the psychological influence of the result, but industries that supply sports clothing, entertainment and drink during this period can rise or fall depending on how the team is doing. For example, companies like JJB Sports and JD Sports see the World Cup as an opportunity to boost their sales revenues and capitalise on the occasion.
However, businesses are always prepared for the worst case scenario. Peter Cowgill, chairman of JD Sports has explained their approach:
“It’s always bad if England exit early because you lose the feelgood factor, but unlike the others I would like to think we have been a little bit more subtle about this and are not going to get caught out.
“After all, we are now a sport- and athletically-inclined leisurewear retailer rather than a straight sportswear retailer.”
It is not just sports retailers that can benefit from the World Cup though, as fans use their mobile phones to remain in touch with what is going on in South Africa. The Salford Quays-based 2ergo Group has been working on an iPhone app to allow fans in the US to keep up-to-date with news and results from the tournament.