Consumer spend in bars up 4.9% in July

Pubs, bars and clubs in the UK saw an uplift of 4.9% in July – the sector’s highest growth since January.

According to the Barclays Consumer Spend report, the UK on-trade was boosted by football fans who headed to their local pub or bar to watch the final rounds of the Euro 2024 football tournament.

Despite England’s loss in the final against Spain, payment transactions almost tripled at pubs and bars on Sunday 14 July, skyrocketing by 195.6% year-on-year.

It also marked the busiest Sunday of the year so far for pubs, with transaction volumes soaring by 92.9% compared with the average Sunday in 2024.

Total card spending dipped by 0.3% in July, compared with the same month last year. Restaurants suffered an 18% decline last month.

Karen Johnson, head of retail at Barclays, said: “Despite England losing in the nail-biting final of the Euros, UK hospitality emerged as a true winner, when the Euros delivered a boost for pubs, bars and clubs.”

Following the Euros, data from CGA by NIQ’s Daily Drinks Tracker reported that drinks sales in Great Britain’s pubs and bars fell by 6% in the seven days to Saturday 27 July.

Spirits suffered the biggest drop (down by 17.1%) of all drinks categories, while cider was the only segment to grow (up 2%). Wine fell by 6.9% and beer declined by 2.3%.

The previous seven days (14-20 July) saw drinks sales rise by 14% with nearly all categories in growth. Cider and beer led growth with 40% and 20% gains respectively, while spirits recorded its first double-digit growth in many months (up 10%). Wine dipped by 3%.

“The Euro 2024 tournament was very much a net positive for the on-premise, and after fans spent freely during games some hangover to sales was to be expected,” said Jonathan Jones, CGA by NIQ’s managing director, UK and Ireland.

“It’s a reminder that money remains tight for many consumers, despite falling inflation and the easing of some household bills.

“We can be optimistic that spending will loosen as the year goes on, but venues and suppliers are going to need to stay sharply focused on value and quality to sustain sales in what is still a challenging trading environment.”

Drinkers in London spent more than £30 million (US$38m) in pubs and bars on the day that England defeated Switzerland during the Euro 2024 football tournament.