Customer spending falls at JD Wetherspoon

Higher interest rates may have hit custom in JD Wetherspoon in January as consumers cut down on their spending, according to chief executive John Hutson.

Announcing its results for the period to 21 January today, the pub group said that while like-for-like sales were up 5.5% over the 12 weeks to 21 January, the growth rate in the past three weeks was notably slower.

Hutson said while it was too early to tell exactly the reasons behind it, it was clear customers were cutting back.

"What we are saying is that Christmas was good and trading through Christmas has been good but January has been quite quiet,” he told the Times.

"With rising interest rates, people can talk themselves into thinking they have less money to spend. From talking to our employees we know they are cutting back."

The trading statement also revealed that Wetherspoons opened eight pubs in the period and completed the disposal of three.

In the current financial year, it anticipates increasing the number of openings to 20 compared with nine last year, with the number increasing to approximately 30 next year.

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By Daniel Thomas

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