Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Leisure, gaming and gambling

Marston's sales fall as Omicron keeps patrons away

"Whilst the emergence of the Omicron variant and subsequent government guidance temporarily impacted consumer sentiment, we remain confident that the strong trading momentum which we were experiencing prior to that will resume," said CEO An

Marston's PLC was the latest victim of Omicron as the company announced a fall in sales in December and January after the coronavirus variant led to new restrictions that kept customers away from the pubs.

In the 16-week period to 22 January 2022, like-for-like sales dropped by 3.9% and total sales were down 3.6% compared with the same period in pre-pandemic 2019, the pub operator said in a trading update, noting that the biggest impact came in the latter half of the period.

Like-for-like sales in the first eight weeks to 27 November grew by 1.3%, but the introduction of new work-from-home guidance and calls to limit social distancing hit trading in the last eight weeks of the period, with like-for-like sales dropping by 8.8%.

Marston's, which operates around 1,500 pubs, said drinks sales outperformed food sales.

During the five-week period of December, like-for-like sales compared to the market outside London's M25 motorway were 1% ahead of the market, while total sales were 5% ahead.

The company's pubs in Wales and Scotland took a worse hit than those in England due to tighter restrictions in those two nations.

"Whilst the emergence of the Omicron variant and subsequent government guidance temporarily impacted consumer sentiment, we remain confident that the strong trading momentum which we were experiencing prior to that will resume," commented CEO Andrew Andrea.

He said plans to ease restrictions in Scotland and Wales coupled with shorter self-isolation periods and the end of the work-from-home rule should enable normalised trading patterns to return.

"Indeed, there is growing evidence over the most recent of weeks of the New Year that consumer confidence is rebuilding, and guests are returning to our pubs in greater numbers, which is encouraging," he said.

Marston's said bank borrowings stood at £199mln on 1 January 2022.

Shares were slightly higher in early trade, rising just under 1% to 78.87p.

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK