Food the winner as sales grow 2.2% in July
Businesses outside of the M25 performed ahead of those in London, with the rest of the country reporting 2.6% like-for-like sales growth during the month compared to an 1.1% rise inside the M25, says the Coffer Peach Business Tracker.
Peter Martin of CGA Peach, the insight group behind the Tracker, said: “Food-led pubs and branded restaurant chains outside of the capital were the big winners in July, together seeing a 4.1% increase in like-for-like sales. Drink-led pubs and bars actually did slightly worse than in July last year.”
Total sales for the month were up 4.3% compared to the same period last year. The report said that the steady growth was ahead of the rate of economic recovery and indicated continued confidence in the sector.
Stronger sales
Following slower growth in May and June this year, July has returned to stronger like-for-like sales growth putting year-on-year like-for-like sales 3% ahead for the 12 months up to the end of July and total sales up 5.4%.
Jarrod Castle, leisure analyst at UBS Investment Research, said: “We view it as positive that recovery is accelerating in the regions. The 12-month moving average inside the M25 is now 3.5% on a LFL basis while outside it’s 2.8%. Performance underlying the numbers is mixed but overall still positive.”
Paul Newman, head of leisure and hospitality at Baker Tilly, said: “The eating and drinking out market outside of London is well into a period of catch up, with like for like sales tracking ahead of the capital for three of the past four months. The UK market as a whole is still experiencing steady growth which bodes well for the rest of the calendar year.”
Ruth Williams is a senior reporter for the PMA's sister title M&C Report.
