JD Wetherspoon reports a 5.1% increase in like-for-like sales, driven by strong food and bar sales. However, the company anticipates a £60 million annual jump in labor costs from April and urges for VAT equalization on food sold by pubs and restaurants compared to supermarkets.
JD Wetherspoon, a prominent pub chain in the United Kingdom, has reported a notable surge in sales, setting the stage for a period of anticipated cost increases in April. The company announced that like-for-like sales had climbed by 5.1% over a 25-week period culminating on January 19, compared to the same period last year. Wetherspoon attributed this positive sales trend primarily to the robust performance of its food sales, which increased by 5.6% year-on-year.
Bar sales also experienced growth, rising by 4.5%. The period surrounding Christmas proved particularly lucrative, with sales soaring by 6.1% over the three weeks from December 16 to January 5.Wetherspoon chairman Tim Martin expressed optimism about the company's prospects for the year, despite acknowledging the looming challenges posed by rising costs. Martin stated that labor-related expenses would increase by approximately £60 million annually starting April 1. He emphasized the need for a level playing field in terms of VAT applied to food and drink sold by pubs and restaurants compared to supermarkets. Currently, most food and beverages sold in supermarkets are exempt from VAT, while restaurants and pubs face a standard rate of 20%. Martin urged Sir Keir Starmer, the leader of the Labour Party, to rectify this disparity, advocating for tax equality and an end to what he perceived as discriminatory advantages for supermarkets. Martin's call for VAT reform echoes concerns raised by other prominent businesses facing escalating costs. Currys, a major electronics retailer, has warned of reduced staffing levels due to the rise in employers' National Insurance contributions. A survey conducted by the British Retail Consortium (BRC) revealed that 67% of 52 chief financial officers anticipated raising prices in response to the increase in employers' National Insurance Contributions from April. Additionally, 81 retail chief executives wrote to the Chancellor of the Exchequer, expressing their apprehensions about the economic ramifications of the Budget. They highlighted that the industry's costs could surge by over £7 billion in 2025 as a result of changes to employers' National Insurance contributions, National Living Wage increases, and the reformed packaging levy
JD Wetherspoon Sales Increase Cost Increases VAT Labour Costs
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Lidl Sees Record Christmas Sales with Surge in CustomersLidl GB reports a 7% increase in sales for the 2022 Christmas period, reaching over £1 billion. The discount supermarket chain welcomed 2 million new customers, driven by strong demand for festive staples like turkeys, Christmas puddings, and Baileys-style liqueurs.
Read more »
Tesco Sees Highest Market Share Since 2016 After Christmas Sales SurgeThe UK's largest supermarket chain, Tesco, reported a 3.7% increase in like-for-like sales for the six weeks leading up to January 4th. This growth, attributed to customers switching to Tesco during the crucial Christmas period, resulted in the supermarket chain achieving its highest market share since 2016.
Read more »
Ocado Sales Surge as More Customers Embrace Online GroceriesOcado reports a 14% increase in annual revenue, driven by a rise in customers, higher weekly order volumes, and an expanded product selection including M&S offerings. The online grocer highlights its growth despite market challenges, attributing the success to competitive pricing and improved service.
Read more »
Bishop's Castle Auction Sees Success With Friday Sales Day ShiftSwitching weekly sheep sales to a Friday morning has been a big success for Bishop's Castle Auction. The change has resulted in more sheep being sold to a strong trade and an increased number of farmers and buyers attending.
Read more »
Vapes four times more profitable for shops than tobacco as sales surgeThere has been a ninefold increase in sales of vapes in convenience stores in recent years.
Read more »
Lloyds Warns of Surge in Rogue Retailers During January SalesLloyds Banking Group warns consumers about the increase in fraudulent retailers during the January sales, urging caution and vigilance when making online purchases.
Read more »