Almost half of Scotland’s pubs, clubs and small hotels reported declining sales during the festive season, according to a survey by the trade body.
The Scottish Licensed Trade Association (SLTA) said the fall followed a reasonably positive summer for the industry and strong growth in sales of soft drinks the craft beer.
In the SLTA study of 600 retailers’ performance over the Christmas and New Year period, 30% of outlets showed growth, 26% remained stable but 44% were in decline.
Paul Waterson, SLTA chief executive, said the findings from the hospitality sector survey, sponsored by KPMG, were a concern.
He continued: “We are also seeing rising costs from increased rateable values and the ever increasing cost of utilities.
“Over 60% of outlets are being hit with higher rateable values, with average increases of 14%, whilst over 70% are seeing increases in the cost of utilities.
“We also continue to see huge pressure for retailers serving rural and tourist locations with over 50% showing a decline over the festive period versus the prior year’’.
Many village pubs were integral to tourism and their community, and he believed their sales decline was likely to lead to further closures and wider impacts on tourism and employment.
“The impact of recent drink driving legislation, plus rates increases and minimum wage legislation makes trading in these areas even more challenging for retailers,” he stated.
Government legislation on drink driving and changes to rateable value were the biggest macro-economic challenges facing these businesses, he said.
Retailers were still committed to training and investing in their staff, and the SLTA was responding with a training app for young people entering the hospitality industry.
The commitment was also seen with 85% of outlets spending more or the same on training.
The SLTA’s third Christmas review provided key insights on food and drink performance from front line retailers.
