A record haul of 25 gold medals for Team GB has surpassed the nation’s wildest expectations but London businesses have been left largely disappointed, consultant Deloitte said today.
Hospitality (pubs, restaurants and hotels) across the capital have seen brisk trade but other businesses suffered from low staff levels and transport problems, according to its survey of 100 large London companies. It found that 42% of firms saw increased demand in the first week of the Games, and 27% reported a decrease. This is well below previous expectations in January, when 80% of respondents had anticipated a rise.
Deloitte partner Heather Hancock said: “This research demonstrates that many companies have benefited from London 2012, although the boost in demand hasn’t met the expectations of all. But for large chains with stores, hotels and restaurants, opportunities have been there to exploit.”
One of the winners, department stores chain John Lewis, saw sales soar 22.4% to £63.3 million in the week to August 4 with Olympics merchandise up 51% on last week.
The retailer said: “A remarkable week of success in the 2012 Games matched our flying start to the new half year. Compared with a year ago, the milder weather, new ranges and sporting activity have all driven demand.”
