🏆 Euro 2024 Brings Economic Boost to the UK

📰 Industry News

• London, the UK’s main stock market retook its crown as Europe’s most valuable for the first time in nearly two years, overtaking Paris. (BBC)

• Investment levels in the UK remain among the worst of the world's richest nations, which needs to improve for the economy to grow, according to The Institute for Public Policy Research. (IPPR)

• Apple is shutting down Apple Pay Later, its buy now pay later service just months after its launch. (The Verge)

• Natwest is to acquire Sainsbury’s Bank, with the supermarket set to pay Natwest £125 million to take it off its hands. (City A.M)

🏆 Euro 2024: A Boost for the UK Economy

With the European Championships underway in Germany, excitement is building not just for football fans but also for the UK economy. The tournament is set to significantly impact various sectors, driving consumer spending and boosting retail sales. Here’s a closer look at how Euro 2024 is shaping economic activities in the UK.

1. Retail Surge in TV Sales:

   • Retailer Argos anticipates selling around 180,000 TVs during the tournament, equating to four TVs per minute! This surge is driven by fans upgrading their home entertainment systems to catch all the action live.

   • Asda expects to sell over 25,000 large-screen UHD TVs, showing the strong demand for high-quality viewing experiences during the tournament.

   • John Lewis said that TV and audio/video sales were up 47% compared to the same period last year, with shoppers spending 13% more on their home entertainment set-up.

2. Economic Boost from Hospitality and Retail:

   • The UK economy is expected to receive a £2.75 billion boost, an increase of the £2 billion boost from the 2022 World Cup. With some favourable kick-off times, pubs, outdoor venues and individual retailers will benefit greatly.

   • Tesco reports a surge in sales of beer, wine, picnic foods, and BBQ essentials. Approximately 33 million crates of beer and 9 million packs of sausages were purchased in preparation for the opening game between Germany and Scotland.

   • M&S customers are buying five times more Belgian beer than British, and sales of nibbles are up 15%, indicating the festive spirit among fans.

3. Rise in Fake Merchandise:

   • With official England and Scotland kits costing over £100, there has been a significant rise in counterfeit shirts. Recently, a seller was ordered to pay back over £118,000 for selling fake kits or face prison.

4. Supermarket Spin:

   • Tesco is offering 200,000 free blood pressure checks to football fans who find the tournament too stressful. After a 5-1 defeat to Germany on the opening night, they’re particularly looking out for you, Scotland fans.

Euro 2024 is a big deal in the UK. Whether you’re a fan of football or not, the positive economic impact is undeniable. While UK businesses will publicly support Three Lions and the Tartan Army, the longer both teams stay in the competition, the more consumers will spend on celebrating and enjoying the tournament.

🚨 Major Food Recall Affects UK Supermarkets 

A significant public health alert has been issued as major UK supermarkets recall products due to an E. coli outbreak. The affected stores include Sainsbury's, Co-op, Tesco, Asda, Morrisons, Boots, OneStop, Lidl, and Aldi.

What We Know

• Three major food suppliers have confirmed product recalls, including Greencore, the world's largest sandwich manufacturer, producing 1.7 million sandwiches daily.

• Lidl faces significant pressure after nearly half of the chickens tested in a lab were found to be contaminated with E. coli, as reported by The Canary.

• There have been 211 confirmed cases linked to the outbreak, with dozens requiring hospital admission. Health officials expect the number of cases to rise as the situation develops.

While spending on beer and BBQ food rises with the Euros, this outbreak will hit the sandwich industry hard.

A comprehensive list of the recalled products is available for consumers to check. Ensuring public safety, the recall spans various categories, including sandwiches and wraps. Here’s the list of the 46 products currently being recalled due to E. coli across the UK.

🛍️ The Rise of Recommerce - 5 Trends From The Ebays 2024 Report

eBay has released a report highlighting key findings from consumer interviews about purchasing habits on the platform, focusing on recommerce – the process of selling previously owned or used goods online.

Here are five key takeaways from the report to fuel your curiosity:

1. Growing Popularity: Over 70% of consumers plan to spend on e-commerce or pre-loved goods this year. This rising trend allows people to shop more sustainably while saving money.

2. Youth Love Pre-Loved: Millennials and Gen Z are at the forefront, with 71% of 25-34-year-olds recently purchasing pre-loved goods. Brands should note that millennials are particularly attuned to sustainability trends.

3. ‘Thrifted’: On eBay alone, items listed with ‘thrifted’ in the description increased by 400% in March 2024 compared to March 2023. As people seek ways to earn extra money amid the cost-of-living crisis, the demand for thrifted and pre-loved items is robust.

4. Refurbished Products: In the UK, over 52% of consumers own refurbished products, including mobile phones and coffee machines. While buying refurbished isn’t new, its market has significantly grown in recent years.

5. Strong UK Market: Additionally, 61% of UK respondents plan to spend on pre-loved goods this year. The UK has a robust market for second-hand goods, which is likely to continue growing.

The shift towards re-commerce reflects people’s need to save money, their environmental consciousness, and their desire to make meaningful purchases. This trend highlights a broader move towards sustainable living and economic resilience, with platforms like eBay, Vinted, and Depop leading the change.

🚨 Inflation Hits Three-Year Low: A Mixed Blessing for the UK

The UK has received some encouraging economic news: inflation has fallen to its lowest level in nearly three years, aligning with the Bank of England's target. This development has significant implications, especially with the general election approaching.

Here’s What You Need To Know:

• Inflation at 2%: In May, the inflation rate dropped to 2%, down from 2.3% in April. This decrease is primarily due to falling prices for food and soft drinks and slower price increases in recreation, culture, and household goods.

• Interest Rates on Hold: Despite the fall in inflation, the Bank of England is expected to maintain the interest rate at 5.25%, a 16-year high. Persistent high prices in the services sector suggest no immediate rate cuts are anticipated before September.

• Political Implications: The economy is a hot topic ahead of the July 4th general election. The Conservatives attribute the inflation decrease to their policies, while Labour highlights ongoing pressures on family finances.

While the fall in inflation is a positive sign, it doesn't necessarily translate to lower living costs for households. Prices are still rising, albeit at a slower rate, and many families continue to struggle with high living expenses. The sustained high interest rates also mean that mortgage rates remain elevated, affecting household budgets. The coming months will reveal if this trend can provide more substantial relief to the public and influence economic policies post-election.

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