Rents, the consumer, inflation, footfall, Pret, ROO, Parkdean & other:

A DAY IN THE LIFE:

Trying to enquire about an electricity bill yesterday, I refreshed my memory as to how irritating these things can be.

First I rang up. Seemed reasonable. The recorded voice told me my call was important to them and that they were unusually busy.

When are they not, I wondered but, when the message changed after ten minutes or so to tell me that I could expect to speak to someone in ‘thirty eight to fifty six minutes’, I hung up.

It had said I could try the webchat, which I did.

But first it was a bot.

It had a list of questions, many of which bore no relevance to my enquiry and it kept, like a dog wagging its tail after bringing you a spit-soaked ball, offering me smiley face emojis and offering me the chance to tick one to prove how happy I was.

I declined and, when the bot got the huff, a human being appeared.

The English was strangled and the person was obviously dealing the a dozen or so enquiries in rotation and had a series of ‘security questions’ – which took ten minutes and which must have been designed to make you hang up – but, in the end, I got some sense out of them and my query was, kind of answered.

However, I won’t be rushing back to repeat the experience. On to the news:

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PUBS & RESTAURANTS:

Rents:

We would point out that, although many changes such as those to VAT, NIC and energy prices happen next week, the rental debt moratorium ended on 25 March, the day on which Q2 rents are traditionally paid. We’re not lawyers but we would suggest that the balance of power has shifted somewhat as a result. There will be a legally binding arbitration process available to parties who cannot how much (if any) accrued rent should be paid. Business minister Paul Scully says ‘this new law will give commercial tenants and landlords the ability to draw a line under the uncertainty caused by the pandemic so they can plan ahead and return to normality.’

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The consumer:

The RAC claims that average petrol prices are not fully reflecting a recent cut in fuel tax. Petrol has fallen less than 4p, and diesel by less than 3p, it said, despite the Chancellor’s 5p cut on fuel duty. Smaller retailers said last week that it would take time for the fuel duty cut to be passed on.

Inflation:

The latest BRC Nielsen Shop Price Index has found that shop price inflation, though still lagging CPI by a wide margin, has hit its highest rate since September 2011. The contributors say that the full impact of rising costs is yet to be felt. Shop price inflation rose to 2.1% in March, up from 1.8% in February. Food price inflation was 3.3%, the highest level since March 2013.

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Footfall:

CGA and Wireless Social have updated on city centre recoveries across the UK saying that ‘hospitality businesses are starting to build sales momentum in Britain’s big cities after a steady return of workers, shoppers and visitors.’ The report suggests that across the 10 largest cities in the UK, ‘sales increased by 3% on the equivalent pre-pandemic period in 2019. It marks a steady recovery from the previous four-week period, when sales were down by 3% on 2019; and from a challenging end to 2021, when many consumers stayed at home because of COVID concerns. Every city measured by CGA and Wireless Social achieved better sales growth than in the latest ‘Top Cities’ report in mid-February.’

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Other news:

Bloomberg’s Pret Index shows that sales have risen in London City and London airports by 1pp and 3pps respectively to 87% and 96% of pre-Covid sales respectively. Bloomberg says it is a ‘potential sign that airlines are also seeing demand finally pick up after two years mired in restrictions.’ London suburbs are at 133% of their pre-Covid levels. All numbers are helped by the current lower rate of VAT. Sales in the West End are +1pp at 106% of pre-Covid levels.

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COMPANY NEWS:

Neighbourhood bar-restaurant company Albion & East will open Teatro Hall on 9 April, at the 1930’s Forum Cinema at 61 New Broadway, W5 5AH.

Arc Inspirations has submitted a licence application for a former prominent retail unit in Nottingham, with plans to turn the site into a Manahatta.

Arc Inspirations has also secured approval to launch a £2.5m Manahatta bar in Newcastle, at the site of the former Allied Irish Bank. The unit is set to create nearly 100 new jobs in the city, and has capacity for 500 guests.

AG Barr has confirmed (as previously announced) Mark Allen will replace John Nicolson as Chairman of the Board on 31 March 2022.   

Dave & Buster’s Entertainment in the US has reported revenues down 1.2% in total and same-store sales down 2.6% in Q4 last year.

Re the outlook, Gfinity says it is seeing a ‘slower than anticipated return to live esports events’, which it says ‘will impact short term revenue and profits, but do not change the long-term prospects or future pathway to profitability in 2023.’ CEO John Clarke says ‘the business remains on the right path to profitability, with increased revenues, lower operating losses and reduced operating expenditure.’

Drinks business reports that Stone Brewing has been awarded $56m in damages after claiming Molson Coors had infringed on its trademark when they rebranded their Keystone Light Lager with emphasis on the word ‘stone’ on the can. The settlement falls some way short of the $216m Stone Brewing sought in damages.

A partnership between WH Smith and Deliveroo will see books, stationery, phone chargers, toys and exam study guides added to Deliveroo’s platform. The high street retailer will offer 600 products for delivery in as little as 20 minutes, joining similar services offered by supermarkets, pharmacies and takeaways.

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Oakman Group has announced the opening of a new Seafood PubCo in Tring in Hertfordshire. It says ‘the handsome Victorian canal-side pub’ has undergone a £1.2m refurbishment.

HOLIDAYS & LEISURE TRAVEL:

Passengers flying with Tui Airways from Wales will no longer be required to wear face masks. The airline dropped its mask mandate for passengers on flights from England and Northern Ireland earlier this month.

Parkdean Resorts has been named the leading holiday provider for the month of March. Many respondents reported better experiences at Parkdean’s 66 holiday parks than on overseas holidays.

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P&O Ferries CEO, Peter Hebblethwaite, has hit back at government’s calls to reinstate the 800 workers it has sacked. Pebblethwaite said ‘your requests would deliberately cause the company’s collapse, resulting in the irretrievable loss of an additional 2,200 jobs.’

A strike at Heathrow Airport by baggage maintenance engineers could disrupt flights over Easter.

OTHER LEISURE:

Imbiba has invested in experiential leisure operator Leisure TV Rights (LTR). LTR has appointed Lisa Buckley, former Côte Brasserie MD, as its new CEO. LTR currently owns and operates the popular Ninja Warrior UK venue in Leeds, and will be adding further Ninja Warrior UK locations to its portfolio this year, including openings in Walsall and Liverpool.

Transport secretary Grant Shapps has confirmed that a £38m superyacht owned by a Russian businessman has been detained in London due to sanctions.

Swytch, a London eBike conversion company, has received £3.1m of funding from OnePlanetCapital at a pre new money valuation of £35m.

E-games company Gfinity has reported H1 numbers to end-December saying that it has seen a ‘continued improvement in financial performance’ with revenues up 8% at £3.3m. The company has made an adjusted operating loss of £0.4m compared with a £0.9m loss in the comparable period last year.

FINANCE & MARKETS:

Sterling mixed at $1.3101 and €1.1789. Oil lower at $110.96. UK 10yr gilt yield up 3bps at 1.65%. World markets better yesterday and London set to open up by around 8pts as at 7am.

RETAIL WITH NICK BUBB:

• Nick is taking a well-earned break.