The proprietor of Higher Crust and Caffè Ritazza has mentioned it should obtain solely a slim fraction of final 12 months’s gross sales due to the affect on its railway and airport retailers from the shift to working and restrictions on journey.
SSP Group, which is planning to cut up to 5,000 jobs within the UK after heavy losses in the course of the coronavirus lockdown, mentioned slightly below a 3rd of its 2,800 retailers worldwide had reopened as far as passenger numbers remained low at practice stations and airports.
It mentioned it anticipated to ring up gross sales in September that had been solely 1 / 4 of these in the identical month final 12 months, regardless of an increase in commuting.
Buying and selling is best in continental Europe, the place weekly gross sales are roughly 66% down 12 months on 12 months as rail journey has recovered in France and Germany. Within the UK, North America and elsewhere weekly gross sales are down by greater than 80%.
The group, which operates in 35 nations, mentioned the sluggish return to commuting and enterprise journey, particularly within the UK, meant gross sales for would fall by £1.3bn, or 86%, for the 12 months to the top of September, worse than the 80% fall predicted in March.
Anticipated underlying losses of about £155m can be consistent with expectations after the group preserved money, partly by agreeing hire waivers or turnover-based offers with landlords.
Simon Smith, the chief govt of SSP, mentioned: “Covid-19 continues to have an unprecedented affect on the journey trade and on SSP’s companies in all geographies.”
He mentioned there had been some enchancment in demand for the reason that top of the disaster, when gross sales fell by 95%, and that the group would reopen retailers if and when demand was ample, because it managed money move tightly. A few third of its retailers have now reopened.
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Smith mentioned: “Within the medium time period we anticipate to see the gradual return of passenger journey to extra normalised ranges. The actions we’re taking to rebuild the enterprise will allow us to emerge fitter and stronger, positioning us to capitalise on future alternatives and delivering long-term sustainable progress for the advantage of all our stakeholders.”
Analysts at Stifel mentioned the journey sector was prone to see lasting change within the mild of the pandemic. Extra working from house and fewer commuting is prone to imply fewer passengers at railway stations, whereas airports usually are not anticipated to get better till 2024, with enterprise journey notably underneath strain.
Nevertheless, Stifel predicts that SSP could possibly be a winner in a tricky setting as weaker gamers fall away. “These traits are prone to drive market consolidation, with best-in-class gamers like SSP well-placed to take share,” mentioned analyst Mark Irvine-Fortescue in a be aware.
Supply: www.theguardian.com
