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City centres bounce back from Covid, CGA reveals

Across the ten cities, sales were just 3% down on the same period in 2019 - a ‘sharp’ improvement on the 10% shortfall in the previous four weeks. However, with inflation running high, sales are ‘substantially’ lower than 2019 levels in real terms.

Hospitality sectors in major British cities including Bristol and Manchester are recovering as Covid restrictions “wind down”, according to new research from the CGA and Wireless Social, a connectivity solutions provider for hospitality and leisure businesses.

In a new series of ‘Top Cities: Vibrancy Ranking’ reports, the firms combine sales and device log-in data to assess the performance of Britain’s 10 most populous cities over the four weeks to 12 February 2022.

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It showed that Bristol was the most “vibrant” of the 10 cities, with eating-out and drinking-out sales in “modest” growth from pre-Covid levels and check-in numbers “improving.”

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Sales were also up in Manchester, lifting the city from ninth place in the last report to second in this one. Glasgow is the third-placed city, while Sheffield moves up four places to fourth.

Across the 10 cities, CGA said sales were just 3% down on the same period in 2019 – a “sharp” improvement on the 10% shortfall in the previous four weeks. However, with inflation running high, sales are “substantially” lower than 2019 levels in real terms.

It added that since check-in numbers are flat compared to the previous period, the improvement may be due to greater spending per head rather than increases in visits.

However, London is in bottom place for the second time in a row, with sales and check-ins still 11% and 38% down on pre-Cocvid levels respectively. While both figures are improvements on the previous four weeks, it said this suggests workers have been slow to return to the capital, and the shortfall of tourists has reduced sales further.

Chris Jeffrey, CGA’s client director, said: “After two very difficult years for Britain’s city centres, our report is proof of their growing vibrancy as Covid restrictions ease. Positive trends in Bristol, Manchester and elsewhere raise hopes that sales and footfall may soon return to pre-pandemic norms.

“However, while many consumers are making up for lost time in pubs, bars and restaurants, others remain cautious about spending as inflation mounts, and trading in London remains particularly challenging. Recovery is going to be fragile, and achieving real-terms growth will be tough amid high inflation.”

Julian Ross, founder and CEO of Wireless Social, added: “It’s really encouraging to see activity is on the rise for hospitality across UK cities, after what has been an unprecedented two years. However, sector businesses still face mounting economic challenges, with the impending rises in VAT, energy bills and inflation on the horizon.”

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