BRITAIN'S biggest nightclub operator Luminar today said revenues were under pressure as more of its customers find themselves out of work.
The company, which runs the Oceana, Liquid and Lava & Ignite clubs, said overall sales fell 5.9 per cent in the 26 weeks to August 27, with a further downturn in trading this month as weekend demand continues to disappoint.
Luminar blamed the do
wnturn on the rising level of unemployment in its core market. The jobless rate among 18-24 year olds is around one in six and closing in on the all-time high of 17.8 per cent set in March 1993 in the wake of the 1990s recession.
The slump in sales for the six months to the end of August was driven by a 6.6 per cent fall in drinks revenues, while footfall was down by 2.9% and admission revenues off 0.2 per cent.
While competitors were driving business through discounted alcohol prices and "all you can drink offers", Luminar said it would stick by its offering of "higher quality content" in a bid to drive greater spend per customer.
Despite the strategy, Luminar warned there was a significant risk that it will not meet City profit expectations for the year to February 25. It said much will depend on trading over the Christmas period.
Shares opened more than 18 per cent lower today.
