The pub chain, City Pub Group, has attributed the hospitality industry’s successful Coronation weekend to warmer weather on Sunday. According to the company, sales on Sunday were notably higher than on the “anaemic” Saturday.
Clive Watson, the executive chairman of the City Pub Group, stated that sales were poor on Saturday due to the dreadful weather. The group owns 43 pubs located in the south of England and south Wales.
Clive Watson reported that Sunday saw a significant improvement in sales, despite the presence of street parties. The group’s sales were 82% higher compared to the same time last year, which came as a relief to the company. Additionally, he mentioned that the first May bank holiday had resulted in the chain’s highest-ever turnover of £800,000.
The Centre for Retail Research projected that consumers would contribute over £1.4bn to the UK economy during the Coronation weekend, with approximately £200m of that amount being spent on food and beverages alone.
Kate Nicholls, the chief executive of UK Hospitality, stated that during the first half of the Coronation weekend, visitors were primarily interested in London and the Coronation event itself. However, during the second half of the weekend, the focus shifted towards communities and a more typical bank holiday experience.
Kate Nicholls remarked that due to the ongoing Coronation activities, there has been an increase in foot traffic beyond the usual levels for this time of year. She estimated that the total additional sales resulting from this could amount to £350m. Nicholls also noted that businesses in London saw the most significant benefits, with hotel occupancy rates in the city centre reaching 95% on both Friday and Saturday nights.
According to Kate Nicholls, the economic influence of bank holidays varied by region and was subject to weather conditions. Nevertheless, she acknowledged that having three bank holidays in May was challenging for many households, particularly given the current cost of living crisis.
Kate Nicholls stated that people have a limited amount of disposable income, so although there may be a boost in spending during one or two bank holidays, it is unlikely to be sustained throughout the entire month. Additionally, she mentioned that the final of Eurovision on 13 May and the FA Cup final on 3 June would add to the expense, making the four weeks a costly period for the British public.
The retail sector in the UK experienced a similar pattern of mixed results over the weekend as the hospitality industry.
According to MRI Springboard data, foot traffic in shops across the UK on Saturday was down by 13.2% compared to the same day last year.
Diane Wehrle, the insights director at MRI Springboard, noted that the Coronation drew people’s attention away from shopping destinations and stores, as many individuals were preoccupied with watching the proceedings.
However, foot traffic saw an increase on Sunday, largely due to the improved weather, with a 7.3% rise compared to the same time last year. Nonetheless, it was slightly lower than the previous bank holiday weekend.
It is challenging to determine the exact impact of the additional bank holiday on the economy since while some businesses may benefit, others may be closed. In 2022, the Office for National Statistics stated that some companies experienced a decline in revenue in June following the bank holiday weekend for Queen Elizabeth II’s Platinum Jubilee.
Source : bbc.com