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London pub sales up despite fears over the impact of the London Bridge terror attack.

By James Wallin , 13-Jul-2017
Last updated on 13-Jul-2017 at 12:43 GMT2017-07-13T12:43:21Z

Sales Boost: London pub sales growth helped by good weather
Sales Boost: London pub sales growth helped by good weather

London pubs saw like-for-like sales grow 2.4% in June.

The latest Coffer Peach Business Tracker showed like-for-like sales across the country up 0.6%, following the 0.4% fall in May.

Despite fears over the impact of the London Bridge terror attack on 3 June, the capital had the best of the trading, with like-for-like sales up 1.2% against 0.4% outside the M25.

Subdued effect

The figures from the 36-strong cohort show pub and bar groups with collective like-for-likes sales growth of 1.1% on June 2016, with casual dining restaurant chains marginally down 0.2%.

Total sales growth in June among the Tracker cohort was 3.7%, reflecting the continuing if more subdued effect of new openings over the year. The underlying annual sales trend shows sector like-for-likes running at 1.4% ahead for the 12 months to the end of June.

Peter Martin, vice president of CGA Peach, said: “Fears of consumers cutting back on spending so far appear premature, at least when it comes to going to the pub or restaurant.

Flat market

“The good weather in June will have helped pubs rather than restaurants, but a positive return across the market, even if modest, is good news. We essentially have a flat market, which considering the uncertainty in the wider economy and the increasing cost pressures that the out-of-home market is experiencing, will be welcomed by operators.”

Trevor Watson, executive director, valuations of Coffer Corporate Leisure, said: “Undoubtedly the favourable weather will have improved wet-led trade in particular. The impact of terrorist attacks on London wet-led venues appears to have been relatively modest compared with previous incidents. DCL is experiencing high levels of activity, with large numbers of both buyers and sellers for all forms of licensed property at present with a perceived change in market sentiment approaching.”

Paul Newman, head of leisure and hospitality at RSM, added: “The pub sector has benefited from June’s spectacular hot spell, particularly those operators with river-based pubs and large gardens.

"Despite the additional cost pressures and general economic uncertainty, the resilience of this month’s results with a return to positive like-for-like sales is encouraging. Operators who offer the consumer an affordable experience will continue to thrive and prosper in the current environment.”

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