SHOPKEEPERS across the UK will suffer as a result of England's Euro 2004 defeat on Thursday night, analysts are predicting.

The failure by the England team to qualify for the semi-final stages of the competition could cost the retail trade millions of pounds.

Analysts said England's defeat at the hands of host nation Portugal means a spending boost worth up to £300m will not materialise.

Retailers and pubs are expected to be the hardest hit, with football fans staying at home instead of celebrating.

The British Retail Consortium said the defeat had cut short a sales bonanza that had netted shopkeepers up to £30m per Euro 2004 game.

Many shops were left with excess stock of England flags, deckchairs, and clothing, as well as beer, as the feelgood factor among retailers stopped short.

The Centre for Economics and Business Research said the economy could have reaped another £300m had England made it through to the final of the tournament, netting individual retailers an extra £100 to £150 per England match.

In the City, shares in companies thought likely to profit from the championship fell, including shirt maker Umbro, down 4p at 113p, and brewer Scottish and Newcastle, which was down 1p at 440p at the close.