By Linda Roper
The arrival of the royal baby boy on Monday afternoon certainly marks another unforgettable moment in British history. After the royal wedding in 2011 and the diamond jubilee in 2012, the British nation has another big (or in this case small 8lbs 6 oz) reason to celebrate their monarchy. The long- awaited arrival of the third-in-line to the throne is not only an event for the media, it has also significant influence on the British economy.
Howard Archer, chief UK economist at IHS Global Insight forecasts a “temporary, small positive boost at a time when the economy seems to be increasingly moving into the right direction.” Figures from the U.K’s Centre for Retail Research (CRR) show an estimated increase in retail sales of £243 million between July 1 and August 31. According to Archer, souvenir sales and commemorative items will push the sales figures up (by an estimated £156 million). The rest, around £87 million, would be spent on alcohol to toast the new addition to the royal family. Richard Cope, Trends Director at market researcher Mintel, forecasts that the biggest commercial opportunity is going to be with tourists.
Retailers also hope for a general increase in sales of baby articles. Shops stocking baby essentials are hoping for the so-called “Kate-effect”. Everything the Duchess of Cambridge buys sells out in seconds. Big baby retailers now hope that the sales of pushchairs and prams will rise by 13 percent to stay in line with trendy Mum Kate. Mothercare, a big baby products retailer, experienced an increase in their share prices by 2.14 percent on Monday afternoon. To keep up with the rising customer demand, they are bringing out little princess/prince baby products.
In summary, experts predict that the economic effects the birth of the royal baby has won’t be the same as in 2011 and 2012 when people were celebrating the royal wedding and diamond jubilee on special bank holidays. On the one side this meant that businesses were losing out because the majority of workforce was paid to stay at home and shops were closed. On the other side, people spent more on street parties and festivities.
Over the next few days we will most certainly hear a lot more about the new family. So far, speculations about a name for the little “Prince Cambridge” are continuing and crowds are currently awaiting the first glimpse of the Royal baby. We from Wolfestone say: Congratulations! We wish you all happiness as a new family.
Let us know what you think. How you are you celebrating the arrival of the new royal baby? How does it influence your consumer behaviour?
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