Julia Finch 

Businesses tap into demand for home entertainment as recession bites

From take-away pizza outlets to holiday camp operators, some firms continue to thrive through the economic downturn
  
  


At first glance there is ­little to connect Pontin's, ­Primark, Asda, Agent Provocateur, Domino's pizza and Sky television. But they are all companies thriving in the recession.

The businesses proving to be recession-proof offer a clear insight into changing spending habits as the economy took a turn for the worse. The cheaper end of the high street is benefiting – supermarkets such as Asda (leading the pack with like-for-like sales growth of 8.4%) and clothing retailers such as Primark (sales are up 5%) – as consumers trade down to save money. Discount supermarkets such as Lidl and Aldi are also stealing market share.

Domino's and Sky are both performing strongly as families stay in more often and look for other ways of treating themselves. Sky signed up 80,000 subscribers in the first three months of the year. Agent Provocateur, the saucy lingerie retailer, and SSL, the firm behind Durex, are presumably doing well for pretty much the same reason. Agent Provocateur, which has 43 shops and continues to expand, recently reported sales growth of 8% over the last year.

One of the most unlikely successes has been the holiday camp operator Pontin's, which announced plans in February to create 2,000 jobs and invest £50m to upgrade its sites. Bookings this year are ahead by 30% as holiday- makers, also squeezed by the weak pound, swap trips abroad for three- or four-night self-catering breaks at £20 a person.

Domino's pizza reported a 25% increase in profits last year to £23.4m and said like-for-like sales were running 15% higher than a year ago. Fast-food chain KFC – whose "bargain buckets" can feed a family of four for £10 – is also seeing strong growth and creating 9,000 jobs.

 

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