The UK hospitality sector delivered a mixed performance in August, according to the latest Oxford Market Watch report from The Oxford Partnership.
Consumer behaviour revealed a growing appetite for premium drinks and longer visits to venues, with dwell times up 12.5% year-on-year in the four weeks to the end of August. However, occupancy rates declined, pointing to a trend where fewer people are visiting venues, but those who do are staying longer and spending more.
London and the South East continued to perform well, supported by tourism and a higher concentration of premium outlets. In contrast, Scotland experienced the sharpest outlet decline, down 3.0% year-to-date, underscoring ongoing structural pressures across the market.
The August Bank Holiday brought a welcome boost, with sales up 3.4% compared to a typical summer weekend. Standout categories included No/Low alcohol (+15.9%), Cider (+10.1%), and Premium and World Lagers, reflecting consumer willingness to spend more during key social occasions.
Alison Jordan, CEO of The Oxford Partnership, commented: “August really underlined the polarisation in our sector. People are staying out longer and increasingly choosing premium options when they do, but that optimism is offset by a steady erosion of outlet numbers and uneven regional performance. The challenge for the trade is to balance value and premiumisation, keeping venues attractive for consumers under cost pressure, while capitalising on occasions where people are willing to spend more.”