Wetherspoon hit by slowing sales

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Related tags: Price rises, Cent, Pub operator, Beer, Jd wetherspoon, Wetherspoon

JD Wetherspoon has been hit by slowing sales following price rises in its 630-strong managed estate.The pub operator, best known for its cheap...

JD Wetherspoon has been hit by slowing sales following price rises in its 630-strong managed estate.

The pub operator, best known for its cheap prices, has suffered a gradual decline in sales growth after pushing through hikes on both food and drink.

A quarterly trading statement revealed sales had risen 22 per cent to £186.6m, but like-for-like sales had risen by just 3.5 per cent, against a 4.9 per cent rise in February.

In March, sales compared with last year rose by 3.2 per cent but by April were down to 2.6 per cent.

The company has opened 13 pubs in the quarter taking its total for this year to 34 and its estate to 641. About 15 more scheduled for the fourth quarter of the year.

The company has risen beer prices by three per cent and food prices by four per cent. The move did have the desired effect of stabilising the group's profit margins.

A statement said: "Margins in the third quarter were broadly in line with the same period a year ago and ahead of the first half of the current financial year. We thus remain confident of future prospects."

Pictured: Tim Martin, JD Wetherspoon executive chairman.

Related topics: JD Wetherspoon

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