New York: Wal-Mart Stores, which has outlets in eight of the 32 countries competing in the soccer World Cup, anticipates sales will boom in those markets should their teams reach next month's final match.
Revenue at stores open at least a year in the nations that contest the final will probably gain by an additional 2 to 4 percentage points over the tournament's month-long duration, Wal-Mart's international chief marketing officer Rick Bendel said by phone from Bentonville, Ankansas. Countries whose teams make the semi-final may see a 1 per cent to 2 per cent benefit, he said.
"It's a television event, and what goes with TV is fresh food, drinks, TV sets, sofas, memorabilia, mugs," Bendel said. In the UK, where Wal-Mart's Asda is the second-biggest supermarket chain, the event could drive "hundreds of millions of pounds" in additional revenue, he said.
Competition
Wal-Mart has an exclusive global agreement with a subsidiary of Fifa, soccer's governing body, to sell memorabilia with the patented term "World Cup" on items such as paper plates, beer vessels and balls. The retailer, which has outlets in 14 countries outside the US, including World Cup contenders Brazil, Chile, Mexico, Japan, Honduras and Argentina, will face competition from rivals such as Britain's biggest supermarket company Tesco Plc, which is sponsoring the England team.
Retailers are tapping the fervour surrounding the World Cup with special products and in-store displays. DSG International, Britain's largest consumer electronics retailer, is offering £10 (Dh53) in cash for every goal England scores to customers buying a tele-vision for more than £599. Kingfisher Plc's B&Q home-improvement chain in the UK is stocking gnomes and wheelbarrows with England's St George flag.
Wal-Mart sees potential for similar global deals to the Fifa agreement, whose terms Bendel wouldn't disclose.
"It's really great that Fifa approached us," Bendel said. "It's a signal of the fact that this is a new dimension for Wal-Mart in terms of leverage. It might open up channels for licence suppliers, the movie industry etc. to consider Wal-Mart as a slightly better partner."
The executive said Wal-Mart's planned £778-million acquisition of Netto's 193 UK discount supermarkets shows the retailer has "tremendous belief" in growing the Asda unit, "when they could be investing in some developing markets".
Asda's UK market share fell to 16.8 per cent in the three months through May 16, according to Kantar Worldpanel, leaving it 0.5 percentage points ahead of third-placed J Sainsbury.
