Will Charles’ coronation provide a King’s ransom for the UK economy? Experts say it could give retailers an even BIGGER sales boost than Jubilee
- Sales were £87million higher than average during last year’s Platinum Jubilee
- Experts say boost from the King’s coronation this year could be even greater
Figures released this week reveal that GDP growth flatlined in February – but there was a small glimmer of hope for retail sales, with many shops having a buoyant month according to the ONS.
The UK’s pandemic-battered retail and hospitality industries could have even more to celebrate in the coming weeks, as many are hoping King Charles’ coronation will lead to a further boost.
Britons have three bank holiday weekends to look forward to in May, with the biggest of these marking the Coronation of King Charles on the weekend of 6 May.
But can stocking up on food, drink and bunting really contribute to an uptick in the economy?
Boost: The Platinum Jubilee was responsible for pushing food sales up by 3.1% in May 2022 according to the ONS
Last year’s celebrations for the Platinum Jubilee seem to suggest that it can.
During that bank holiday weekend, between 2 and 5 June, the economy benefited from a spending boom across hospitality, transport, entertainment and food shopping as transactions in these areas soared.
Market researcher Kantar reported that sales over the Platinum Jubilee weekend were £87million higher than on average in 2022.
And data from Barclays showed that restaurants saw a sales increase of 41.5 per cent while pubs, bars and nightclubs were up 74.2 per cent.
Public transport use also saw an increase of 38.3 per cent, as people travelled around to see family and friends and attend celebrations.
The Jubilee celebrations also boosted food sales which rose by 3.1 per cent in May as Britons stocked up in advance of the early June celebrations.
Fraser McKevitt, head of retail and consumer insight at Kantar said that purchases of ice cream increased by 35 per cent over the Jubilee week, compared to the average in 2022.
Many people tried their hand at the official Jubilee pudding, the lemon swiss roll and amaretti trifle, and sales grew by 16 per cent for lemon curd, 58 per cent for fresh cream, 18 per cent for Swiss rolls and 9 per cent for custard.
But the boost in sales from the King’s coronation this year could be even greater than the Platinum Jubilee.
James Hardiman, senior analyst at the British Retail Consortium says ‘Given the King’s coronation will be such a historical event, we expect an even larger uptick in retail sales, with consumers flocking to purchase coronation related-memorabilia, bunting, and food and drinks to celebrate the occasion.’
Interactive Investor’s senior personal finance analyst Myron Jobson also said that the coronation could give retail sales ‘a much-needed shot in the arm amid the cost-of-living crisis – similar to last year’s Platinum Jubilee celebration.’
It’s not just Royal events which have the power to boost economic activity.
Easter data from Barclays shows that hospitality and leisure businesses benefited from a 2.7 per cent increase in the total number of sales over the Easter Bank Holiday weekend this year compared to Easter 2022, as Brits made the most of the warmer weather.
UK sectors which saw an uplift in spending include restaurants, up 3.9 per cent, camping and caravan sites, up 8.4 per cent, sports centres, up 21 per cent, and fast food, up 0.5 per cent.
Helen Dickinson, chief executive of the BRC also said that UK total retail sales in March were boosted by Mother’s Day flowers and gifts, up 5.1 per cent against an increase of 3.1 per cent in March 2022.
Preparations are underway for the King’s coronation on 6 May. Many retailers are hoping for a much-needed lift in sales similar to that of the Platinum Jubilee weekend
This kind of spending is important. As Myron Josbon points out, ‘the resilience of consumer spending in the face of rising prices is one of the main factors that have prevented the UK from entering a recession.’
However inflationary pressures and the cost of living crisis could curb spending this time around.
He continues that ‘while many Britons will want to raise a toast to the new King and make the most of their time off work, many could choose to pare back on spending to stay in the black.’
