Consumers get Grand Final fever – which sectors will win big?
The grocery, hospitality and consumer electronics sectors are just a few of the industries that will take advantage of spend-thrift AFL fans on this year's upcoming AFL Grand Final Day, according to new figures from IBISWorld.
Australia general manager Robert Bryant said in a statement that fans are expected to spend over $450 million on celebrations on AFL and NRL Grand Final days, with the hospitality industry tipped as the final's biggest.
"Despite the economic downturn and growing unemployment, it seems sports loving Australians are still planning to spend up big when it comes to cheering on their team to victory on Grand Final Day," Bryant said.
"Whether it's splurging on a big screen TV or travelling interstate to see the action live, hosting a bumper BBQ or heading to the pub for a few beers and a chicken parmigiana, millions of Australians will be celebrating on Grand Final day in 2009, with the AFL and NRL expected to generate $250 million and $200 million respectively."
Domestic appliance, furniture and equipment retailing
Bryant says that in preparation for the Grand Final, fans spend more on domestic appliances, furniture and electrical equipment to the tune of over $10 million. Many families invest in new televisions and barbeques in order to watch the game with friends and family.
"Despite a tough 2008-09 for domestic appliance retailing, the continued resilience of the Australian economy, flow through of the Government stimulus and Gen Y's insatiable appetite for high-technology goods means we will see stronger revenue growth in this sector of about 1.2% during 2009-10, rising to $18.9 billion," he said.
"Special events such as the Grand Finals will help kick start this increase, which is great news for retailers such as JB Hi-Fi, Clive Peeters and Harvey Norman, all of which have recorded losses in recent times."
Over $200 million worth of better, wine and pre-mixed drinks is set to flow for Grand Final celebrations.
"While low cost, high volume suppliers such as Dan Murphy's and Liquor Land will account for the lion's share of this spend, all liquor retailers - large and small - will be stocking their shelves for the expected increase in demand," Bryant says
Supermarkets and grocery store retailing
Supermarkets may see a decline in the amount of money spent on Grand Final barbeque preparations, with many consumers opting for cheaper or home-brand solutions for food and condiments.
But Bryant says spending will still amount to over $30 million in this industry, with convenience stores also gaining their share of the spend with ice, soft drinks and snack foods.
The catering industry is set to receive $10 million through in-stadium and private offerings on the big day. Bryan says about 16,000 are expected to attend corporate functions for both AFL and NRL Grand Finals, with the major caterer for the MCG, Spotless Group, set to receive most of the earnings.
Pubs, bars, restaurants and cafes
IBISWorld expects a $75 million boost for pubs, bars, cafes and restaurants for the AFL and NRL Grand Finals, with many fans opting to enjoy the game away from home.
Advertising rates have plummeted during the downturn, but the AFL Grand Final will give Channel 10 plenty of reason to increase their rates - Bryant says the popularity of the day has seen the network charge $120,000 for a 30 second spot.