Rioting led to 10% drop in hospitality sales, figures suggest

Disorder on the streets and warnings of rioting across the nation last Wednesday led to a 10% drop in hospitality sales, according to latest figures.

As businesses closed and consumers stayed at home amid predictions of widescale disorder last week, sales fell by up to 40% in some areas and footfall was down by as much as 75%, UK Hospitality said.

Coastal towns were particularly affected by the cancellation of coach and day trips, while city centres also saw significant disruption, with many employees advised to work from home.

Business Secretary Jonathan Reynolds has backed UK Hospitality’s calls for insurance companies to act swiftly to help businesses recover.

UK Hospitality chief executive Kate Nicholls 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.

“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.”

Separate data from MRI Software last week also suggested UK high streets suffered from the effects of ongoing disorder, with footfall declining by an average of 4.8% week on week from Sunday August 4 to Wednesday August 7, compared with an average decline of 2.7% across all UK retail destinations.

The drop in footfall peaked on Wednesday, with high street footfall down by 7.5% over the 24-hour period.

Regional cities outside London witnessed the greatest impact, particularly in Yorkshire and the West Midlands, according to MRI Software’s OnLocation Footfall Index.