Like-for-like sales suffered a dip of 1.5 per cent in the capital during November, with restaurant chains being hit the hardest with a drop of 2.6 per cent, compared to a 0.8 per cent decline in the managed pub sector.
The report states that ‘public nervousness about going out’ was the largest contributing factor for the results.
Growth across the rest of the country experienced a 0.3 per cent increase year-on-year.
The report is produced in partnership by CGA Peach, Coffer Group, RSM and UBS.
Peter Martin, vice president of CGA Peach, said that he hoped that public confidence in London would improve again for Christmas and New Year.
“When you consider that October had seen a 2.5% jump in like-for-like salesnationally, with London up 3.5%, you can see the scale of this November’s fall-back.Also November 2014 had seen a 3.4% increase on 2013.
“The public’s nervousness is understandable and it seems London has been affected both by a drop-off in tourist business and Londoners not staying out as long after work. Operators are reporting both reduced sales and cancellations of bookings, in restaurants and late night venues.”
Trevor Watson, director at Davis Coffer Lyons, part of the Coffer Group, said: “The international dimension seems to be having a significant impact on London in particular. Sterling has strengthened considerably over the last year, which is likely to be having an adverse effect on the spending of overseas visitors who make up a large proportion of London diners.
“This longer term effect, combined with the short term effect of the Paris bombings, is resulting in weak statistics for London in November. With the local London economy overall in good health, operators should however continue to look forward to a strong December.”