King Charles’ coronation to boost UK retail, with sales forecast to outstrip Platinum Jubilee

Figures released this week show that GDP growth leveled off in February – but there was a small glimmer of hope for retail sales, with many stores having a buoyant month, according to the ONS.

The UK’s pandemic-ravaged retail and hospitality industry should have even more to celebrate in the coming weeks as many hope King Charles’s coronation will spark further impetus.

The British have three bank holiday weekends to look forward to in May, the largest of which marks the coronation of King Charles on the weekend of May 6.

But can stocking up on food, drink and garlands really contribute to an economic upswing?

Last year’s celebrations for the Platinum Anniversary seem to suggest it can.

During that holiday weekend, between June 2 and June 5, the economy benefited from a boom in spending on hospitality, transportation, entertainment and food stores as transactions boomed in these areas.

Market researcher Kantar reported that sales over the Platinum Jubilee weekend were £87 million higher than average in 2022.

And data from Barclays showed that restaurants saw a 41.5 percent increase in sales, while pubs, bars and nightclubs saw a 74.2 percent increase.

Public transport use also saw a 38.3 percent increase as people traveled to see family and friends and attend parties.

The anniversary celebrations also boosted food sales, which rose 3.1 percent in May as Britons stocked up ahead of early June celebrations.

Fraser McKevitt, head of retail and consumer insight at Kantar, said ice cream purchases increased 35 percent during the anniversary week, compared to the 2022 average.

Many people tried the official Jubilee pudding, the lemon swiss roll and amaretti trifle, and sales grew 16 percent for lemon curd, 58 percent for fresh cream, 18 percent for Swiss rolls and 9 percent for custard.

But the increase in sales from this year’s coronation could be even bigger than the platinum anniversary.

James Hardiman, senior analyst at the British Retail Consortium says: ‘Given that the coronation of the king will be such a historic event, we expect an even greater surge in retail sales, with consumers flocking to the coronation to buy memorabilia, flags and and buy food and drink. celebrate the occasion.”

Myron Jobson, senior personal finance analyst at Interactive Investor, also said the coronation could give retail sales “a much-needed boost amid the cost-of-living crisis — akin to celebrating the platinum anniversary of last year’.

It’s not just royal events that 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 total Easter holiday weekend sales this year compared to Easter 2022, as Britons made the most of the warmer weather.

UK sectors that saw an increase in spending include restaurants, up 3.9 percent, camping and caravanning, up 8.4 percent, sports centers, up 21 percent, and fast food, up 0 .5 percent.

Helen Dickinson, CEO of the BRC also said overall UK retail sales were boosted by Mother’s Day flowers and gifts in March, up 5.1 per cent from a 3.1 per cent rise in March 2022.

Preparations for the coronation of the king on May 6 are in full swing. Many retailers are hoping for a much-needed boost in sales similar to that of the Platinum Jubilee weekend

These kinds of expenses are important. As Myron Joshon points out, ‘the resilience of consumer spending in the face of rising prices is one of the key factors that have prevented the UK from sliding into recession’.

However, inflationary pressures and the cost-of-living crisis could curb spending this time around.

He continues that ‘while many Britons would like to toast the new king and make the most of their free time, many might choose to cut corners to stay in the black.’