Spirit Pub Company reports managed estate drop in sales

The group saw like-for-like food sales during the eight weeks fall 0.3%, while drink sales declined 3.4%. Across its leased estate like-for-like turnover fell 2.7%, while like-for-like income dropped 4.2% over the eight weeks.

For the 28 weeks to 2 March, like-for-like sales climbed 1.4% across the managed estate, with food sales up 2.3% against a 0.8% decline in drink sales. Across its leased estate like-for-like turnover fell 1.9% with income down 2.9%.

The group said that despite the recent sales decline it continued to outperform the market.

It has invested in 50 pubs in the year to date, mainly in across its John Barras and Fayre & Square brands. Following a review of its brand portfolio, its community and high street pubs have been combined in a new Local Pubs division. These pubs share a similar guest base and will be predominantly branded as John Barras, with the Original Pub company brand no longer used.

It said that its leased estate was similarly impacted by the challenging weather comparatives.

The company said it continued to focus on its innovation trials and enabling its “licensees to improve performance through sharing our retail expertise and investing in our estate with 38 investments completed in the year to date”.

It said it was also making good progress disposing of pubs that have limited future potential with a further 12 pubs sold in the period taking the number sold to 20 in the year to date and to 72 in the last twelve months. Proceeds remain in line with book value.
Mike Tye, chief executive, said: “Recent trading has been impacted by adverse weather conditions and, with the consumer environment remaining challenging, we are redoubling our efforts to improve the retail offer in all areas of our business to give our guests more compelling reasons to visit our pubs. We remain confident of delivering full year expectations.”