Sales slip at JD Wetherspoon
Like-for-like sales at JD Wetherspoon decreased 0.1% for the 13 weeks to 27 April 2008.
Overall sales for the year to date (39 weeks to 27 April) like-for-likes are down 1.5% but overall company sales are up 1.5%.
The managed operator said there had been a slow February but sales were boosted by a succesful beer festival in April.
"Traditional ale sales have been in decline in the pub market for many years, but we have recently experienced a recovery in our pubs," its trading statement said.
"At our recent real ale festival we sold the equivalent of approximately 2.5m pints, an increase of over 7% on a like-for-like basis.
"Wine sales continue to improve, and premium bottled beers and spirits are also showing positive trends.
"We continued to see growth in coffee and tea sales during the period and have upgraded our food offer by re-launching our curry and steak club nights with great success."
JD Wetherspoon said its operating margin, already down to 10.1% from 10.6% in the first six months, would continue to be squeezed due to the rising cost of food and labour and an increased spend on marketing.
It has opened 19 new pubs so far this financial year with four more due to open and a target of 30 for next year.
"The pattern reported in the first half continued, with food sales in the period growing strongly but with bar sales remaining slightly down.
"The combination of better than expected sales and higher than expected costs has led to a satisfactory outcome for the period.
"However, the market for bar sales remains challenging and the company continues to be cautious in the short term, in line with the comments in our interim results. We still remain confident of our long term prospects."
