Thousands of people will gather in London this weekend for the coronation of King Charles, the first in 70 years.
This influx of people will be good news for businesses – many of which are pinning their hopes on a boost in sales over the long weekend after a rough few months amid the cost-of-living crisis.
But some sectors will benefit more than others from increased demand during the busy three-day holiday weekend.
Fit for a King:-Home gatherings may be the preferred options for many as a cheaper alternative to eating out, which is good news for UK supermarkets
Food and drink sales in restaurants, bars and supermarkets are likely to benefit from increased demand and hotels and accommodation will also see an explosion in bookings as people travel to London to see the spectacle.
Short-term gains don’t make for good stock selection – but existing investors in these types of companies could see their portfolios receive a welcome boost from the long weekend.
We asked investment experts which companies will benefit from a royal surge in sales.
Supermarkets
Experts think UK supermarkets are likely to see a boost over coronation weekend – a continuation of trends seen at last year’s anniversary celebrations.
With the festive mood of the coronation, many people will plan to entertain family and friends in the garden or have a street party with their neighbours.
“This is likely to be a rising tide that lifts all ships,” said Sophie Lund-Yates, principal investigator at Hargreaves Lansdown.
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But she thinks the UK’s biggest supermarket, tescois well positioned in the grocery sector thanks to its leading market share and strong online footprint – not to mention the success of its Aldi price comparison campaigns.
AJ Bell stock market analyst Dan Coatsworth chooses well-known name Marks & Spencer like another supermarket to look at.
“From fancy sausage rolls to bottles of prosecco, M&S has it all and its reputation for higher quality products could make it a popular choice for those looking to toast King Charles over the long weekend,” he says.
Interactive Investor’s head of investment, Victoria Scholar, agrees that M&S’ offering of coronation garlands, tea towels, a cake stand, King Charles III mugs and beer could boost sales this quarter, attracting people who host parties at home or looking for a memorable keepsake.
Top drink: Gin is likely to be a popular drink at the coronation, and chic tonic maker Fevertree is lining up to capitalize on it
Pubs and drinks
Refreshing gin and tonics will likely be a staple of coronation garden parties. Dan Coatsworth thinks tonic companionship fever tree will benefit from this.
‘If you’re going to enjoy a gin, why ruin it with a cheap tonic? he says. “That is the main premise behind Fevertree’s business strategy.
“It has managed to position itself as the chic tonic for a quality gin.”
Coatsworth thinks too Fuller, Smith & Turner could get doubly good news from the coronation.
“Many of its pubs are in and around London, making it a natural place for thirsty revelers to visit when they head to the capital for King Charles’s big event,” he says.
Hospitality thrives during holidays, especially when there’s an air of national excitement and frivolity, according to Lund-Yates.
She thinks this could be a bull’s-eye for pub and restaurant sales. This would be a welcome trend for Mitchells & Butlerswhich owns well-known brands, including Miller & Carter steakhouses and a large café and bar portfolio.
As people head out to enjoy a holiday drink, bars and restaurants with trusted brands could thrive.
Victoria Scholar singles out JD Wetherspoon, home to cheap pints, marking the occasion by serving a specially brewed real ale. The televisions will also show the coronation events.
“No doubt pub culture will be at its peak during the weekend of royal celebrations, which will boost sales for the pub chain,” she adds.
Transport
Transportation is expected to come under pressure during the festivities, and increased alcohol consumption is likely to lead to an increased need for taxis – which will be good news for Uber.
“Recent group show booking results have been strong and will likely remain so over the bank holiday,” says Sophie Lund-Yates.
“Financially, Uber could use a lift, because its profit position leaves much to be desired.
“There is always a chance that the cost-of-living crisis will keep the demand for private car rides in check, but overall, the events of the coronation should lead to a spike in demand,” she continues.
Hilton Hotels and Resorts, London’s largest hotel group, could get a boost from more weekend room bookings, according to experts
Hotels and accommodation
Queen Elizabeth II’s Platinum Jubilee attracted an additional 2.6 million visitors to London last year, according to Patricia Yates, CEO of VisitBritain.
It’s likely the coronation could have a similar impact on a particularly strong cohort of royal fans from the United States.
Airbnb is another company likely to benefit from increased bookings in London during the coronation, Victoria Scholar notes.
She points out that the holiday home rental site is enticing homeowners with a £100 discount voucher for those hosting their first guest next weekend.
The company said hosts made more than £500 during the Queen’s anniversary last year. There will likely be a tailwind from an increase in the number of listed properties and from travelers from all over the UK and abroad descending on the capital,” she continues.
Hotel bookings have boomed as British and international revelers flock to London to take part in the festivities.
With hotels raising prices around the busy weekend, Victoria scholar thinks Hilton Hotels and Resorts, London’s largest hotel group, could get a boost from more room bookings and spending on food and drink.
Clearly, a short-term uptick is not good for stock picking.
Sophie Lund-Yates points out that it is important to monitor the true magnitude of any increase in sales from the coronation, and it will be crucial to understand whether the increase is due to higher sales volumes or higher prices.
“Customers are currently more price sensitive and there will be a limit to how much cost inflation can be passed on to gamblers without volumes falling,” she says.
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