Various Eats, Naked Wines, 888, consumer squeeze, belt tightening etc.:

A DAY IN THE LIFE:

My considered opinion, on reacquainting myself with the situation, is that puppies are every bit as affectionate – and certainly every bit as revolting – as I remember them.

And they’re also very much like the flower in the Little Shop of Horrors. The more you feed them, the bigger and uglier they get, and the more they try to eat you.

Still, until the fateful day when they do manage to ingest you, they may be good for your health. I reckon at this stage in the creature’s life, she’s worth about 5,000 additional steps a day on the Fitbit. On to the news:

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PUBS & RESTAURANTS:

Near term trading:

UKHospitality CEO Kate Nicholls said the ongoing rail strikes will push businesses ‘closer to the edge’, with struggling town and city centre venues unable to withstand a further drop in revenue…

Consumer squeeze:

Bank of England Chief Economist and Executive Director for Monetary Analysis Huw Pill has said that the Bank will do everything in its power necessary to get inflation back to its 2% target…

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The Resolution Foundation claims that Britain’s cost of living crisis is being made worse by Brexit dragging down the country’s growth…

Lessons from America:

We aren’t US analysts but it is worth keeping an eye on developments over the water because some trends could be replicated in the UK. Placer.ai reports that footfall for full-service restaurants fell by 4% year-over-year for the week of June 6, while quick-service restaurants saw footfall up 7.3%…

Other news:

Chris Wayne-Wills, CEO of Crerar Hotels, takes over as UK Hospitality Scotland Chairman from Calum Ross…

Night-Time Economy Advisor for Greater Manchester, Sacha Lord, has said he will provide an hour of free drinks in Manchester for the launch of ‘Hospitality Hour’.

COMPANY NEWS:

Various Eateries has reported H1 numbers to 3 April saying that it has seen a ‘positive performance and trading in line with expectations for the full year…..’

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Naked Wines has reported full year numbers to 28 March…

Pernod Ricard has agreed to sell its Tormore Scotch whisky brand and distillery to premium spirits producer, Elixir Distillers…

Gravity Active Entertainment has announced a £10M investment into a new leisure experience at Westfield Stratford City…

HOLIDAYS & LEISURE TRAVEL:

Despite a denial from government ministers, Ryanair has said that recent airport chaos, flight delays and cancellations has been ‘completely to do with Brexit’….

Meanwhile Sky News reports that there will be ongoing uncertainty regarding cancelled flights this summer….

The US Travel Association forecasts that a full recovery in inbound travel to the US is not expected for another three years…

Accor is reported to be entering negotiations to sell a 10.8% stake in Ennismore to a Qatari consortium for €185m.

VisitBritain/VisitEngland has appointed Patricia Yates as permanent CEO after Yates took on the role on an interim basis in April after former incumbent Sally Balcombe stood down.

OTHER LEISURE:

888 updates on trading saying that ‘888 currently expects to report revenue of between £330-335 million for the six months ended 30 June 2022……

A new regulatory filing shows that Twitter is asking its shareholders to approve the $44bn takeover deal led by Elon Musk….

The Wall St Journal has suggested that TikTok, a subsidiary of China-based Bytedance, should make up to $12 billion in advertising revenue this year, up by a factor of three on what it generated last year. With demand booming, advertising rates are reported to be shooting up.

Elon Musk has said that Tesla’s new factories in Germany and the US are “losing billions of dollars” due to battery shortages and supply disruptions…..

FINANCE & MARKETS:

With inflation hitting a new forty year high of 9.1% in the year to May, Chancellor Rishi Sunak has said ‘we are using all the tools at our disposal to bring inflation down and combat rising prices.’

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The Telegraph, which is often seen as favourably disposed to the government, reported yesterday that ‘the Government is sending out incredibly confused messages on whose income can and should go up and whether such will or won’t exacerbate inflation……’

Comments:

The BCC says the ‘further increase in Consumer Prices Index inflation to 9.1% underscores the severe pressure that businesses and households are under……’

Money Savings Expert’s Martin Lewis says ‘the economic situation is moving at speed. Inflation is rampant. Stagflation (inflation coupled with recession) is a concern.’

Government numbers suggest that the average house price in the UK now costs £281,161 (in May), up 12.4% year on year.

Sterling mixed at e$1.2257 and €1.1593. Oil price lower at $109.73. UK10yr gilt yield down 17bps on recession fears at 2.47%. World markets lower yesterday. London set to open around 19pts down as at 6.30am.

FORTHCOMING NEWS:

Rank Group updated Monday with a profit warning. Gear 4 Music reported full year numbers Tuesday and Chapeldown Wednesday. It’s Various Eateries H1 & Naked Wines full year numbers today and Carnival Cruises reports Q2 numbers on Friday.

A bit more lively on the economics front. UK CPI and RPI numbers were out Wednesday with Public Sector Borrowing numbers today. Friday should see Flash PMI numbers as well as the widely-followed GfK Consumer Confidence numbers.

RETAIL WITH NICK BUBB…