Fuller's estimates rail strikes reduced sales by £4m
Pub group Fuller's has estimated that industrial action since October cost the business around £4m, and said earnings for the year are anticipated to be lower than expected as a result.
In a trading statement, the group said sales for the four-week Christmas and New Year period increased by 38% against last year, a period impacted by Covid restrictions and work from home guidance. Due to the impact of the train strikes, sales compared to the same four weeks in 2019 were down 5%.
Like-for-like sales for the 43 weeks to 21 January 2023 were up 20% on last year, "despite the challenging consumer backdrop". In comparison to pre-pandemic levels, sales were 97% of the same period in the 2020 financial year.
Chief executive Simon Emeny said: "We are encouraged by our underlying sales performance. While it is frustrating that the train strikes have set back our reported sales and earnings, it is reassuring that we are achieving our anticipated sales trajectory in periods unaffected by strikes. While ongoing strike action will dampen sales, demand from customers remains good and we are optimistic that 2023 will deliver further sales growth through a busy calendar of events, and as office workers and tourists continue to return to the capital.
"We are operating in a high inflation environment, and that continues to impact our operating costs and margins. While some of these costs may be temporary in nature, others – such as the National Living Wage increase – are more permanent and we are focused on taking action to mitigate these costs wherever we can."
Continue reading
You need to create an account to read this article. It's free and only requires a few basic details.
Already subscribed? Log In
