Marston's confident pubs can benefit from 'pent-up' customer demand post-Christmas

Marston’s has said customers are returning to its pubs after coronavirus restrictions put a dent in its Christmas sales.

The pub group, which operates around 1,500 sites nationwide and employs 12,000 people, said it was confident there was still a “pent up consumer demand” to visit hospitality venues.

In a trading update for the 16 weeks to 22 January 2022, Marston's like-for-like sales were 3.9% down on the same period in 2019.

During the eight-week period up until 27 November, like-for-like sales were up 1.3% amid “encouraging trading momentum”, but the government advice to work from home in December and limit social contact saw sales drop 8.8% during the following eight weeks.

During the 16-week period Marston’s generated positive cash inflow despite the net outflow of £8m for one-off payments relating to duty/VAT and the CMBC contingent consideration.

Andrew Andrea, chief executive of Marston’s, said: "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.”

He added that the reduction of the self-isolation period and end to the work from home guidance should allow “normalised trading patterns” to return.

Andrea added: “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.

“Importantly, Marston's has a well invested, predominantly community pub estate which is well placed to benefit from the pent-up consumer demand which we are confident remains."