Pubs enjoy bumper December despite rail disruption
Brits heading out to Christmas parties helped drive spending in bars and pubs higher by 7.9 per cent in December despite rail strikes.
Members of ASLEF, the train drivers’ trade union, staged walkouts during the first week of the month, as they continued strike action in their ongoing national dispute over pay.
However, new figures from Barclays showed travel disruptions did not deter the public from hitting the town and cheering the festive season.
Spending in restaurants declined, falling 8.8 per cent, but this was the sector’s best month since last August.
A squeeze on living public finances has led many Brits to scale back on dining out in a bid to save costs.
Digital content and subscription spending also enjoyed a strong month, with spending up 11 per cent on premium services such as Apple TV+.
Karen Johnson, head of retail at Barclays, said: “Hospitality and leisure businesses will be encouraged by December’s strong growth, particularly in the entertainment category, which saw growing demand for live shows, new films and TV series.
“While the upcoming energy price cap is weighing on Brits’ minds, the falling rate of inflation offers a glimmer of positivity and it’s encouraging to see the nation’s optimism increase slightly as we head into a new year.”
However, retailers enjoyed a less buoyant month, with the season of giving failing to make amends for a sluggish year.
Data from the British Retail Consortium (BRC), showed UK Total retail sales increased by 1.7 per cent in December, against a growth of 6.9 per cent last year.
Helen Dickinson, chief of the BRC, said: “The post-Christmas sales were unsuccessful in enticing spend in areas such as furniture and homeware, with households remaining cautious about making larger purchases.
“Sales saw a slight uptick in the week leading up to Christmas as consumers scrambled to purchase last minute gifts, particularly online, due to the wet weather. In gifting, beauty products were the standout performer and toys and gaming also sold well.”
She added: “2024 looks to be another challenging year for retailers and their customers, and spending will continue to be constrained by high living costs. Retailers will also have to juggle various cost pressures, including the rise to business rates this April.”