** The rise in tourism, as a result of having an American bride-to-be, will likely be the most significant boost for the UK economy in the context of the Royal wedding ** Based on the uplift in retail sales we witnessed at the last Royal wedding in April 2011, we could see weekly retail sales jump 17 per cent – with food and drink the natural winners ** Publicans will be looking to pull as many pints as they can during the extended trading hours over the weekend
As the world gears up to celebrate the exchange of vows between Prince Harry and Meghan Markle on Saturday 19 May 2018, KPMG UK has picked the brains of our UK head of consumer markets, Linda Ellett, and our chief economist, Yael Selfin, to gauge prospects for UK businesses.
Commenting on the prospects for consumer businesses, Linda Ellett, UK head of consumer markets at KPMG, said:
“The Royal wedding can only be viewed as a positive event for consumer businesses, particularly in light of how difficult things have been in the sector recently. Indeed, the latest BRC-KPMG Retail Sales Monitor recorded the sharpest sales drop in 22 years.
“Thankfully though, Royal weddings appear to have a more positive impact on these businesses. The wedding between the Duke and Duchess of Cambridge in April 2011 resulted in a monthly like-for-like retail sales jump 6.31 per cent, and weekly sales up as much at 17%, compared to the same month and week the year before.
“If we look to the impact on tourism, ONS statistics recorded that 30.8 million overseas residents visited the UK the year of the last Royal wedding – a boost of 3.3 percent on the previous year – and businesses of all shapes and sizes will no doubt be poised and ready to capture the increased footfall. The hope of course, is that we don’t only see an uptick now, but visitors go on to recommend a trip to our shores when they are back on home turf.
“Food and drink sales are the natural winners during times like these, as people come together and look to make the most of the moment. Indeed, UK publicans will be keen to make the most of extended trading hours this weekend. Meanwhile, many grocers have already sought to mirror the Anglo-American ties, with ingredients from both sides of the pond. This weekend will mark a prime opportunity to fly the flag for Brand Britain.”
Commenting on the prospects for the UK economy, Yael Selfin, chief economist at KPMG, added:
“The Royal wedding will mark a happy occasion, and an opportunity for people in Britain to celebrate. While it may encourage some rise in spending by UK consumers – particularly in areas like fashion, merchandising, as well as food and drink – the overall impact on the UK economy is likely to be small.
“One of the more significant boosts to the UK economy will come from a rise in tourism, particularly given Meghan Markle’s American background. Coupled with the weak pound and a strong US economy, we are likely to see a jump in US tourism spend this summer.”
Notes to editors:
· The latest BRC-KPMG Retail Sales Monitor figures, for the month of April 2018, can be found: here
· The Office for National Statistics: Travel Trends 2011, can we found: here
For media enquiries, please contact:
Simon Wilson, KPMG Corporate Communications
T: 020 7 311 6651
M: 077853 73397
Angela Pink, Communications Executive
T: 0207 694 2679
KPMG Press Office: +44 (0)207 694 8773
About KPMG in the UK
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
© 2021 KPMG LLP a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.