Brighton Pier Group reports ‘widespread decline’ in Q2

Brighton Pier Group has announced that total sales for the six months ending 25 June 2023 are expected to be in the region of £16.2m.

The group said that the second quarter “has proved more difficult”, with sales remaining behind 2022. It added that the current macroeconomic environment is leading to a “widespread decline” in disposable incomes and consumer confidence.

It also noted that ongoing inflationary pressures, meanwhile, in particular in relation to food and beverage and staff costs have adversely affected the group’s operating margins in the current reporting period.

The combined effect of these lower sales with the inflationary cost pressures are expected to result in earnings after tax below market expectations.

The board notes that the group is currently in the middle of its busiest period in July and August. However, July 2023 trading has been impacted by unseasonably poor weather, train strikes and most significantly the impact of the fire at a major hotel opposite the entrance to the Pier, which resulted in some disruption for about a week. 

The summer months represent a significant opportunity for the group, with these two months historically contributing approximately 30% of annual sales, which in turn equate to a significant proportion of the earnings of the group for the year.

Anne Ackord, chief executive officer, said: “The group is navigating a challenging trading environment, with persistent high inflation and reduced footfall continuing to affect disposable incomes across many of the group’s trading sites. When combined with the ongoing cost pressures we face it has led to lower than expected sales and earnings in the first half of 2023.

“With current economic trends set to continue in the short to medium term the outlook must continue to be one of caution.”