THE LEADING PUBLICATION FOR THE INDEPENDENT HOSPITALITY SECTOR Page 2 Pages 19-22
Prfessional Kitchen Show
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Property and Professional
ISSUE 220
CLHNews
Editor's Viewpoint
JANUARY 2019
Festive Pub & Restaurant Spend Increases Despite Consumer Concerns
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HOTELS, RESTAURANTS, PUBS & CATERING
Consumer spending grew 1.8 per cent year-on-year in December, the lowest rate of growth seen since March 2016. With inflation at 2.3 per cent, this equated to a contraction in real terms. However, it was good news for the hospitality sector which saw year-on-year spending in pubs increase by12.9 per cent whilst restaurant spending increased by 9.1 per cent as Brits made the most of the festive period by relaxing and dining out. Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, shows that essential spending growth dipped to just 0.6 per cent – the lowest figure recorded since July 2016 – caused by a contraction in supermarket spending of 1.1 per cent.
Non-essential expenditure saw a muted month, rising by a modest 2.0 per cent. This figure however, was boosted by strong growth in pubs and restaurants. The high street, on the other hand, continued to face challenges despite the festive season. Clothing spending saw its third consecutive month of negative territory, falling by 3.0 per cent, while department store expenditure declined by 6.3 per cent. Spending in this sector remained subdued as shoppers cut back on clothing and balanced out their budgets when it came to Christmas time. In the face of numerous reports of store closures and the challenges facing well-known high street brands, over half of Brits (52 per cent) say they want
to support their local high street. Furthermore, 38 per cent said they are deliberately choosing the high street over online-only retailers, suggesting consumers want the high street to remain an important part of their local community. Despite Brits’ good intentions to support their local economies, many remain concerned about their spending power. One in two consumers (49 per cent) expect to cut back in January to cover the cost of Christmas, while 48 per cent say they feel less confident about their personal finances in the coming year than they have done for many years.
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