Festive boost for pubs but fears for the future
Britain's pubs and bars enjoyed a welcome Christmas boost but there are fears the year ahead could be dire, according to a poll of members of the Association of Licensed Multiple Retailers (ALMR).
Nearly 60% of ALMR members saw a rise in like-for-like sales over the last three weeks of December. But the figures also show that consumers saved their money for late in the festive season.
Food led-pubs enjoyed the best growth in sales as companies ditched expensive Christmas parties in favour of a trip to the pub but small, traditional pubs did suffer as many stayed at home to enjoy the festivities.
The results showed:
• 56% reported a drop in trade in the week commencing 14 December with 25% reporting a drop of more than 10% on last year.
• 61% reported an increase in trade in the week commencing 21 December on last year.
• 67% reported a further increase in trade for the week commencing 28 December with 25% reporting trade up more than 10%.
Gloomy outlook
Despite a successful Christmas period, the survey also revealed that 48% believed first quarter trading would be "dire". However, 52% said they believed the next 12 months would prove satisfactory.
"Our members are right to be cautious about the next 12 months — all the indications are that the current recession will get worse before it gets better," said ALMR chief executive Nick Bish.
"Like all businesses, pub and bars will have to adapt to tougher trading conditions.
"What is most important is that the Government does more to ease the burden on pubs and bars. This is absolutely vital if it is serious about helping to keep people in jobs.
"It could start by scrapping the alcohol duty escalator that unfairly punishes licensed premises, tackle below-cost bargain basement deals peddled by supermarkets that fuel irresponsible drinking and streamline the licensing system by slashing excessive red tape. All of this is essential for pubs to survive this downturn and thrive in the future."
