Retailers and leisure groups are today calculating the economic impact of England's humiliating defeat against Croatia which is expected to add up to £600m in lost sales.

Sports retailers have already been forced to issue profit warnings just hours after England limped off the field.

Sales of replica football shirts are expected to plunge with the team out of the finals of Euro 2008, admitted Umbro, the company behind England's kit.

Sports World, owned by Mike Ashley's Sports Direct, said it would also be hit by the same problem.

Shares in Sports Direct were down by 16% in early trading, with Umbro down by 2.5%.

Other retailers were also hit by the expected downturn in demand for team shirts. JJB, which has not yet said how badly it will be damaged by the national team's failure, was down by 3.5% this morning.

However, the warnings were met with derision by some analysts.

"Nike doesn't put out a warning that sales are going to be 10% down because Tiger Woods hasn't made it into the Masters," said Mike Dennis, a senior analyst at Piper Jaffray. "It seems extraordinary that a retailer relies on just one sales stream."

Last night's 3-2 defeat is expected to have a big impact on a range of businesses, from pub groups through to supermarkets, as the mini high street boom which is usually sparked by England fever is now officially cancelled.

The British Retail Consortium estimated that sales would be down by £600m next year.

A spokesman said: "Major football tournaments unite the country more than any other national event and attract attention from people who are never usually watch a match.

"Spending is going to be hugely affected in pubs, on food, flags and even in big screen TVs."

But some campaigners will be delighted that the multimillion pound replica kit industry has taken a hit.

The sector has been the subject of repeated probes over complaints fans are paying over-the-odds for club shirts.

In September JJB Sports, Umbro and other big sports retailers handed out 14,000 free replica football shirts to placate customers following a class action lawsuit launched by Which?, the consumer group.

Last week, Asda chief executive, Andy Bond, criticised the cost of replica kits.

"Footie shirts just cost a ridiculous amount of money. As a guy who has a son of 10, I think it's outrageous how much you have to pay," Bond said.

Dr Deborah Price, head of legal affairs at Which?, said: "The obvious thing for the retailers to do now is lower their prices so they sell more volume. Somehow, I can't see that happening."

Sales of replica kit have been steadily declining for some time, but last night's result is expected to have a significant effect.

Shares in Sports Direct slumped to under 100p following its profit warning. The shares are now worth less than a third of the 300p they floated at in February.

The controversial group has an agreement to buy 65% of all England shirts that Umbro expects to sell in a year.