JD Wetherspoon has enjoyed a rise in younger customers who enjoy cocktails, although some older clients have stayed away.
After Tim Martin’s announcement that the like-for–like sales figures for the past fifteen weeks have fallen 8.9 percent compared to levels during the same time period in 2019, the shares of the group saw a dip.
Wetherspoons stated that this result included a 9.6 Percent decline in bar sales. But, Wetherspoons also highlighted an increase in drinks purchased more often by its younger customers.
The hospitality company saw cocktail sales grow by 45 percent, vodka sales increased 17% and rum sales climb 26% in the period from November 7 to 11.
It revealed, however, that its older customers were buying draughts products in significant decline amid cautiousness due to the pandemic.
Traditional draught ales sales declined 30% and traditional stout sales dropped 20%
After Tim Martin, the leader of the group (pictured), revealed today that the like-for–like sales figures for the 15-week period are 8.9 percent lower than the levels in 2019, shares dropped.
Martin is the founder and chairman of the company. He said he hopes that Covid-19 booster vaccines will increase the trade of older customers.
He stated that Wetherspoon pubs do not have music, and 46 trade as Lloyds. A substantial portion of our business comes from older customers who visit pubs less often in recent years.
According to our annual report published October 20,21, no cases of Covid-19 were reported among Wetherspoon patrons.
“But, customers were cautious. The outlook for Covid-19 will have an impact on trade.
“While we are cautious about the near future sales of vaccines, the positive effects of booster vaccinations as well as better weather during spring will likely have a beneficial impact on the next few months.
Wetherspoons stated that some of its customers are working remotely have caused Wetherspoons’ food volumes to drop by 22% in breakfast sales and 30% in coffee sales.
Investors were also informed by the company that it had experienced’some difficulties from time to time’ in its supply chain during this period. However, it stated these problems related to a “minority” of items for which there was a solution.
Stocking for food and bar products was increased in accordance with past years. Recent weeks have seen problems lessen.
In early trading, shares were down 3.3% to 990.6p
Last month Wetherspoon recorded its biggest loss on record after suffering heavily from Covid-19 restrictions – losing more than £150million last year.
The Watford-based company has only seen losses in three of its 37 years – in 1984, 2020 and 2021 – but the 12 months to July 25 were its worst to date.
The chain sunk to a pre-tax loss of £154.7million, up from £34.1million a year ago, while sales were down from £1.26billion to £772.6million.
