Hospitality sales soar in Britains top cities: report
However, the 11% inflation rate in October is taking a bite out of city-centre sales.
Hospitality sales in the four weeks to 19 November were ahead of the same period in 2019 in eight of Britain’s 10 most populous cities, with growth across 10 cities totalling 4%, according to a report by CGA by NielsenIQ and Wireless Social
Like-for-like sales were 5% higher than in 2019 levels. Six of the 10 cities also recorded an increase in device log-ins—likely driven by the start of the festive season—but a promising sign that city-centre footfall is beginning to return to pre-COVID-19 patterns in most cities, the report said.
However, the soaring price of energy, food and other costs is putting both hospitality businesses’ margins and consumers’ spending under severe strain. With Britain’s rate of inflation reaching 11% in October, most operators’ city-centre sales are still well behind the levels of both 2021 and 2019.
“Restaurants, pubs and bars have steadily built back from COVID-19 turmoil over the course of 2022, and these latest figures are encouraging for the key festive season. The World Cup, Christmas markets and parties should all deliver good footfall and spending, but the costs crisis and prospect of more rail strikes cast a shadow over the crucial final weeks of the year. Consumers are as keen as ever to eat and drink out, but with so many challenges not of their own making, some city-centre businesses face a make-or-break Christmas,” CGA client director Chris Jeffrey said.
The ’Top Cities’ report combines CGA’s sales data with Wireless Social’s check-in statistics to provide a ‘vibrancy’ ranking of the top 10 cities. Manchester tops the list for the third time in a row, with double-digit sales growth. It finished ahead of Glasgow and Birmingham, which features in the top three for the fifth successive period. At the other end of the rankings, London is bottom for the fourth period in a row, though sales and check-ins here continued to move closer to pre-COVID levels.
