Wal-Mart sees world cup sales boom in countries reaching final(70100)

Wal-Mart sees world cup sales boom in countries reaching final

Wal-Mart Stores Inc., 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 monthlong 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 percent to 2 percent 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 U.K., 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. 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 U.S. 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 fervor surrounding the World Cup with special products and in-store displays. DSG International Plc, Britain s largest consumer electronics retailer, is offering 10 pounds ($15) in cash for every goal England scores to customers buying a television for more than 599 pounds. Kingfisher Plc s B&Q home-improvement chain in the U.K. is stocking gnomes and wheelbarrows with England s St George flag.

New Dimension

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 license suppliers, the movie industry etc. to consider Wal-Mart as a slightly better partner.

The executive said Wal-Mart s planned 778 million-pound acquisition of Netto s 193 U.K. discount supermarkets shows the retailer has tremendous belief in growing the Asda unit, when they could be investing in some developing markets.

Asda s U.K. market share fell to 16.8 percent in the three months through May 16, according to Kantar Worldpanel, leaving it 0.5 percentage points ahead of third-placed J Sainsbury Plc.

Wal-Mart sees world cup sales boom in countries reaching final

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