Riots drag down hospitality sales by 10%
City centres also saw mass cancellation of events, with many workers instructed to work from home
Violent disorder and the nationwide threat of rioting last Wednesday (7 August 2024) caused a significant 10% drop in sales as businesses closed and customers stayed away, according to CGA by NIQ.
The impact on sales in towns where rumoured protests were planned to take place was as high as 40%, with businesses reporting footfall down by as much as 75%.
CGA said there were also widespread cancellations, particularly in coastal towns where coach and day trips were pulled. City centres also saw mass cancellation of events, with many workers instructed to work from home.
Over the weekend, the business secretary Jonathan Reynolds backed UKHospitality’s calls for insurance companies to act swiftly to help businesses recover.
Kate Nicholls, chief executive of UKHospitality, said: “These figures are startling and show the enormous impact the riots, and threat of further disorder, have had on our high streets and communities. Bustling, vibrant city centres were turned into ghost towns as the public stayed at home and businesses shut.
“Thankfully, protests and riots didn’t materialise as feared this weekend and we can now turn to how we support our high streets to recover, at a time when many were already struggling with the affordability of running a hospitality business during challenging economic times.”
She added: “Hospitality is the glue that knits our communities together and our sector stands ready to work with the government to play a central role in the renewal of our high streets after the challenges of the last 10 days.
“For those businesses sadly affected, that work has already begun and I’m grateful that the Secretary of State has backed our call for swift action from insurance companies dealing with claims. Quick action on practical measures like insurance claims will be crucial for businesses to get back on their feet.”
