JD Wetherspoon reports sales rise despite supermarket pressure
JD Wetherspoon has reported a 1.7% rise in sales, despite claiming that VAT disparity with supermarkets continue to put it at a "great disadvantage".
For the 13 weeks to 26 April 2015 total sales increased by 5.8%. In the year to 26 April 2015, like-for-like sales increased by 3.6% and total sales increased by 7.9%.
Wetherspoon said that it had opened 20 new pubs and disposed of four since the start of its financial year. It plans to open a total of 30 pubs this year.
In a trading update, the pub giant said: "The Late Night Levy, combined with higher business rates per pint and a huge VAT disparity, mean that pubs continue to trade at a great disadvantage to supermarkets."
"For the next financial year, there are a number of factors which are likely to influence our trading performance, although they are difficult to quantify at this stage. Positive aspects include an increase in our pub numbers, stable utility prices and slightly lower interest rates. Other trends include increased competition from supermarkets and restaurant groups, together with additional staff and repair costs."
