Wetherspoon sales down across summer
Wetherspoon has seen its like-for-like sales decline further across the summer, as competition from supermarkets and public concern about binge-drinking hit its trading.
The 655-pub managed operator has reported a like-for-like sales fall of 1.7 per cent in August, compared to a 0.6 per cent like-for-like decline in the year to July 24.
Across the year, Wetherspoon's total group turnover grew 3 per cent to £809.9m, with pre-tax profits down 15 per cent to £46.1m.
The company opened just 13 pubs during the year, compared with 28 the year before. Average sales per pub increased by 1 per cent, with the uplift from new outlets countering the like-for-like fall.
Chairman Tim Martin said the company "has made considerable efforts to reduce costs, both at head office and in the pubs. We are also keeping a tight grip on capital investments, pending clarity on the impact of a smoking ban - initially in Scotland and then in the rest of the UK."
The company pointed put that despite criticism linking pubs to antisocial behaviour, "it should be borne in mind that the percentage of alcoholic drinks consumed in pubs has declined dramatically in the last 25 years, from approximately 83 per cent of total consumption to approximately 60 per cent now."
Wetherspoon also pays around £311m in annual taxes. "The great majority of our customers is extremely well behaved, and the company makes a major contribution towards the economy."
Along with a 'considerable' increase in competition from supermarkets, and from duty-free imports, there has been a reduction in the number of people visiting town and city centres, "as a result of unfavourable media coverage of problems associated with excessive drinking in some areas".
Wetherspoon said its ban on two-for-one drink offers and an end to discounting of double sprits measures had also had an impact on turnover and profitability, "but indicates our willingness to adopt sensible policies and our co-operation with the authorities in this area."
Once the transfer to the new licensing regime is complete, the company expects its pubs in England and Wales to be open around one hour later on weekdays, and up to two hours later on Friday and Saturday evenings.
With 36 non-smoking pubs now operating, Wetherspoon plans to have 50 smoke free outlets trading by Christmas, and will review performance at these pubs in early 2006.
The initial impact has been a decline in turnover of around 7 per cent in smoke-free pubs, with profit margins declining as sales shift from drink to lower-margin food.
