Retail/Hospitality’s Gooooal! is to Cash in On World Cup

Over the next 39 days, U.S. wholesale and retail sectors could see a $1.47 billion bump in sales from the 104 FIFA World Cup soccer matches set to take place during that time in America, Canada and Mexico.  That estimate comes from a 2025 analysis that OpenEconomics conducted for both FIFA, the global governing body for soccer, and the World Trade Organization.

But while retail landlords and retailers are gearing up to generate revenue with help from promotions, activations, fan fests related to the tourney, some questions have been raised about whether the numbers being forecast might turn out to be over-optimistic.

Among those signaling a note of caution in a just-released report from the ICSC on spending related to the tourney are John Mercer, head of global research and managing director of data-driven research at Coresight Research, and Elizabeth Lafontaine, Director of Research at retail-location analytics firm Placer.ai

Said Mercer: “The big picture is that the FIFA World Cup will drive pockets of spending in retail, but a substantial share of overall spending will bypass retail [and] redirect spending from one form of services to another.”

In a similar vein, Lafontaine said while U.S. retailers could see a lift from purchases of goods for World Cup get-togethers and retail centers in host cities might notice spikes in spending thanks to out-of-market visitors, “Both of these opportunities could potentially be offset by macroeconomic uncertainty among U.S. consumers who might exercise more caution around their spending this summer.”

Grocers and sporting goods retailers stand to benefit the most from the World Cup, Lafontaine says, from shoppers stocking up for World Cup celebrations to those hunting for related merchandise. She also noted experiential, entertainment and dining brands also might generate more traffic during the tournament. Coresight’s Mercer added consumer electronics retailers – think big-screen TVs to take in the matches – to the mix of potential World Cup winners.

Click here for more from the ICSC report, which also delved into the tourney-related promotions and events at such retail destinations as the American Dream mall in E. Rutherford, N.J., and the recently renamed World Cup Plaza in Plano, Texas.