Drop in drinks sales and rising costs indicate ‘challenging spring’

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Challenging spring: train strikes and rising costs indicate little respite for hospitality firms (Credit: Getty/ bogdankosanovic)

Drinks sales in managed venues have fallen year-on-year for the second week in a row, the latest CGA by NIQ’s Drinks Recovery Tracker has revealed.

The data showed sales during the seven days to Saturday 18 March were 2% behind compared with the same week last year.

While this is a slight improvement on the previous week, which showed a 3% year-on-year decline, after adjustments for inflation sales were still “substantially” below last year’s levels, according to CGA.

Major blow

The figures indicated a “major blow” to footfall in town and city centres on Thursday 16 March, when rail strikes were in place, with sales having plunged 26% below the equivalent day in 2022.

St Patricks Day (Friday 17 March) provided some recovery for the sector, with sales rising 15%, however, damp and windy weather in much of the country held down trading on most other days of the week, including Saturday 18 March, when sales were 7% down year-on-year.

Category wise, beer (3%), wine (3%) and soft drinks (4%) were all in year-on-year growth.

However, cider and spirits sales dropped 2% and 15% respectively, the worst results for the categories since the start of the year.

Little respite

This comes as data from Lumina Intelligence last week revealed the “rising cost of living notable rail strikes” and had impacted consumer value in the eating out market.

Additionally, beer prices saw an 11.8% hike in the year to February 2023, according to recent figures from the Office For National Statistics (ONS).

CGA managing director UK & Ireland Johnathan Jones said: “A 26% drop in sales indicates the effect that rail strikes have on the out of home sector.

“News of more high inflation this week is a reminder of the soaring costs that face consumers and businesses alike, and with little respite to those pressures in sight it will be a challenging spring for many businesses in the sector.”