Sales by Tier, coming out of lockdown 2.0

by | Dec 8, 2020 | Blogs, Sales Figures

Tiers 1,2 and 3 down  30%, 39.2% and 77.8% respectively.

Analysis from S4labour shows that sales in Tier 1, 2 ad 3 venues are down 30%, 39.2% and 77.8% respectively year on year.  As we expected, the tougher lockdown restrictions have been disastrous for the sector, however there is also proof in Tier 2 that despite greater restrictions on average than before lockdown (most areas in Tier 2 came from either Tier 1 or 2 in October/November), that some consumer confidence is there. A lower post-lockdown effect can be seen than previously expected, as pent up demand for hospitality drives sales yet restrictions preventing households from mixing indoors curbs sales as the cold December kicks in. The new rules concerning eating are also affecting overall sales, as going out for a drink no longer becomes an option, and a trip out becomes more expensive. As expected food sales are down by less year on year at 18.9%, whilst drink is down 49.6%.

 

It must be noted that whilst these figures compare sites that are open; 25% of Tier 2 sites are still closed, and 91.7% of Tier 3 sites are closed. Take these venues into account and the overall figures are much worse.

 

Richard Hartley, Chief Product Office at S4labour commented:” We can fear that with these levels of sales that a lot of venues will struggle to be profitable. The number of sites not open shows just how catastrophic the current restrictions are for the industry. This is a time that hospitality normally thrives and many organisations rely on December revenues to get through January and February.”

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