Sales up at pub group Wetherspoon

By NICK GOODWAY FOR MAILONLINE
Updated:

 

Drinkers are trading down to pubs and bars where they can get more for their money in these times of economic woe.

JD Wetherspoon pub

Value proves tempting: Sales are up for Wetherspoon as drinkers search out value

Pubs group JD Wetherspoon sent out its biggest-ever mailshot just over three months ago, targeting 15m homes across Britain with special offers and deals on drinks and meals. The response, said finance director Keith Down, was by far the best the group had had: 'It helped people to see that we do offer good value in these straitened times.'

Wetherspoon continually changes its promotions with current ones including a loyalty card for coffee drinkers and burger, chips and a pint at £4.59.

Ahead of its financial year-end this month, the company said like-for-like sales had risen 0.4% in the 11 weeks to 13 July. That is considerably better than most of its larger pub group competitors have reported recently.

Down said: 'We are particularly pleased because these numbers were up against a very strong final quarter in 2007, just before the smoking ban came into effect. They also look pretty good when most of the competition is seeing a fall in sales.'

But the chain is not resting on its laurels. 'We know that we are not recession-proof,' Down added. 'But we are fairly resilient. However, we expect a considerable increase in our costs in the coming year.

'It's not just energy and food, but a significant proportion of the increase comes from Government legislation, especially in excise duty and labour-cost rises.'

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