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Refusal to discount sees sales down at Regent
In a pre-close trading statement, pub group, Regent Inns, has reported a "solid" trading performance for the second half.
However, the company’s refusal to lower prices – allied to a "significantly weaker sporting calendar compared with last year" – has impacted on sales. The company said it had "concentrated instead on greater differentiation and quality of the customer offering", which it believes will provide long-term benefits for its brands.
Like for like sales for the 49 weeks to 14 June were down 6.9 per cent at Walkabout and down 7.4 per cent at Bar Risa/Jongleurs.
During the year to 5 July 2003, Regent will have opened nine Walkabouts, two Bar Risa/Jongleurs and one Stone House, all of which are operating in line with the company’s expectations.
Openings for next year will reflect a further reduction in capital expenditure – to £30m – with a forecast of six Walkabouts and one Bar Risa/Jongleurs.
The success of The Stone House at Hertford will see the brand extended to three existing Bar Risas and one unbranded site during next year. Additionally, two further unbranded sites will be redeveloped into Walkabouts.
The sale of 17 unbranded pubs to Porter Black Holdings will now not take place, due to the company going into receivership. However, Regent intends to find an alternative buyer as soon as possible, although it warns that the original price of £4.27m agreed in October last year is unlikely to be matched.
The disposal is also expected of a pub owned by Regent whose lease was originally held by the Unchained Growth Pub (UGP) group. The UGP estate was sold to the Faucet Inn Pub company when UGP went into receivership and the lease has reverted to Regent’s ownership.
Elsewhere, following a reassessment of its unbranded estate refurbishment programme, Regent has put four of its 11 unbranded pubs up for sale.
The company predicts that results for the full year will be in line with market expectations.