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| Cineworld confirms UK and US closures; UK car sales hit two-decade low – business live | Cineworld confirms UK and US closures; UK car sales hit two-decade low – business live |
| (32 minutes later) | |
| Rolling coverage of the latest economic and financial news | Rolling coverage of the latest economic and financial news |
| The UK retail sector suffered a drop in customers last week, as new Covid-19 restrictions and a burst of autumnal rain kept people at home. | |
| That’s according to analytics firm Springboard, which found that retail footfall dropped most sharply in the evening -- after the government brought in a 10pm closure for pubs and restaurants. | |
| Springboard reports that: | |
| Footfall across all retail destinations throughout the UK declined by -3.5% last week from the week before | |
| Footfall across retail destinations declined by -8.4% between 7pm and 11pm and -14.8% between 11pm and 7am | |
| UK footfall fell each day between Wednesday and Saturday, averaging -7.1%, no doubt in part a consequence of the severe rain across the UK | |
| Footfall across all retail destinations is now 31.4% lower than 2019 | |
| Becta, which represents workers in broadcasting, entertainment, communications and theatre, agrees that major studios must bear the blame for Cineworld’s closures: | |
| Philippa Childs, head of Becta, says: | |
| [Nolan’s Tenet is one of the few blockbusters to hit the screens in recent months]. | |
| Childs also warns Cineworld not to treat its staff badly (many are on zero-hours contracts). | |
| The boss of Cineworld, Mooky Greidinger, has told Sky News that there was “no alternative” to the temporary closure of sites in the UK and US. | The boss of Cineworld, Mooky Greidinger, has told Sky News that there was “no alternative” to the temporary closure of sites in the UK and US. |
| Greidinger blamed the movie studios decision to postpone several major releases, such as Black Widow, The King’s Man and Wonder Woman 1984 since the pandemic began. | Greidinger blamed the movie studios decision to postpone several major releases, such as Black Widow, The King’s Man and Wonder Woman 1984 since the pandemic began. |
| The delay to No Time To Die on Friday was the final straw, as a new Bond film is always the biggest movie release of the year in the UK, Greidinger explained. | The delay to No Time To Die on Friday was the final straw, as a new Bond film is always the biggest movie release of the year in the UK, Greidinger explained. |
| This has forced Cineworld to close for the second time this year, as it didn’t have the goods to offer customers. | This has forced Cineworld to close for the second time this year, as it didn’t have the goods to offer customers. |
| Greidinger argued that these delays are a mistake: | Greidinger argued that these delays are a mistake: |
| But he also pointed out that cinemas remain closed in New York, and parts of California, which is encouraging the studios to hold new releases back. | But he also pointed out that cinemas remain closed in New York, and parts of California, which is encouraging the studios to hold new releases back. |
| Boris Johnson has told reporters this morning that people should go out to the cinema and support the industry: | Boris Johnson has told reporters this morning that people should go out to the cinema and support the industry: |
| Here’s a full response on Cineworld’s closures, from Mike Clancy, General Secretary of the Prospect union: | Here’s a full response on Cineworld’s closures, from Mike Clancy, General Secretary of the Prospect union: |
| The news that Cineworld was preparing to close its UK cinemas broke yesterday, casting a shadow over the whole sector. | The news that Cineworld was preparing to close its UK cinemas broke yesterday, casting a shadow over the whole sector. |
| My colleague Julia Kollewe spoke with cinemagoers arriving at the Vue cinema in Islington for a Sunday treat. | My colleague Julia Kollewe spoke with cinemagoers arriving at the Vue cinema in Islington for a Sunday treat. |
| Clemmie Jacques, 39, who came to see Disney’s Pixar animation Onward, with Tim Osman, 33, said this was her fourth trip to the cinema since the pandemic. | Clemmie Jacques, 39, who came to see Disney’s Pixar animation Onward, with Tim Osman, 33, said this was her fourth trip to the cinema since the pandemic. |
| “It’s a real pity,” Jacques said about Cineworld’s demise. | “It’s a real pity,” Jacques said about Cineworld’s demise. |
| Jacques thinks smaller boutique chains and independent cinemas such as the Everyman chain, which “has sofas and is more of an all-round experience” might fare better. | Jacques thinks smaller boutique chains and independent cinemas such as the Everyman chain, which “has sofas and is more of an all-round experience” might fare better. |
| “It’s better for dates as well,” Osman chipped in. | “It’s better for dates as well,” Osman chipped in. |
| Rachel and Michael Thorn, with their children Zadie, 6, and Jack, 3, spontaneously decided to go to the Vue cinema in Islington in north London on Sunday, for the first time since the Covid-19 outbreak. | Rachel and Michael Thorn, with their children Zadie, 6, and Jack, 3, spontaneously decided to go to the Vue cinema in Islington in north London on Sunday, for the first time since the Covid-19 outbreak. |
| Her husband, who was buying tickets for Onward along with popcorn and drinks, said about the Cineworld closures: | Her husband, who was buying tickets for Onward along with popcorn and drinks, said about the Cineworld closures: |
| India Townsend, a 29-year-old solicitor, had arrived at the Vue cinema to see Tenet. She has been to Vue and the local Odeon several times since the outbreak. | India Townsend, a 29-year-old solicitor, had arrived at the Vue cinema to see Tenet. She has been to Vue and the local Odeon several times since the outbreak. |
| Eren Dogan, 21, customer assistant at the Vue, said customers appreciated being able to visit the big screen again. | Eren Dogan, 21, customer assistant at the Vue, said customers appreciated being able to visit the big screen again. |
| He estimated that 300 to 500 people are now coming to the cinema every day, but noted that “there is limited film availability”. | He estimated that 300 to 500 people are now coming to the cinema every day, but noted that “there is limited film availability”. |
| To combat Covid-19, Vue has introduced hand sanitiser stations, physically distanced seating, staggered film times, extra cleaning and made face masks compulsory for cinema goers and staff. Screens are disinfected after every screening, including arm rests, and staff have been instructed to wash their hands every hour. | To combat Covid-19, Vue has introduced hand sanitiser stations, physically distanced seating, staggered film times, extra cleaning and made face masks compulsory for cinema goers and staff. Screens are disinfected after every screening, including arm rests, and staff have been instructed to wash their hands every hour. |
| Mike Clancy, head of the Prospect trade union, fears that Cineworld’s closures and job losses will be repeated across the UK this winter, unless ministers provide more support to sectors worst hit by Covid-19. | Mike Clancy, head of the Prospect trade union, fears that Cineworld’s closures and job losses will be repeated across the UK this winter, unless ministers provide more support to sectors worst hit by Covid-19. |
| Peter Bradshaw, our film critic, has got the James Bond producers firmly in his sights this morning. | Peter Bradshaw, our film critic, has got the James Bond producers firmly in his sights this morning. |
| He writes that the postponement of No Time To Die until spring 2021 has sent a chill through the industry (as well as triggering Cineworld’s decision to close screens across the UK and US). | He writes that the postponement of No Time To Die until spring 2021 has sent a chill through the industry (as well as triggering Cineworld’s decision to close screens across the UK and US). |
| It shows a spectacular lack of nerve, which 007 certainly wouldn’t approve of. | It shows a spectacular lack of nerve, which 007 certainly wouldn’t approve of. |
| Here’s a flavour: | Here’s a flavour: |
| Here’s the full piece: | Here’s the full piece: |
| Cineworld’s decision to shut its UK and US screens is awful news for around 45,000 staff, who are now out of work, explains my colleague Jasper Jolly: | Cineworld’s decision to shut its UK and US screens is awful news for around 45,000 staff, who are now out of work, explains my colleague Jasper Jolly: |
| Here’s his full story: | Here’s his full story: |
| Britain’s services companies continued to cut jobs last month, despite growth holding up better than feared. | Britain’s services companies continued to cut jobs last month, despite growth holding up better than feared. |
| The latest survey of purchasing managers across UK services firms shows that layoffs continued last month -- a trend that is worsening with Cineworld’s closures. | The latest survey of purchasing managers across UK services firms shows that layoffs continued last month -- a trend that is worsening with Cineworld’s closures. |
| Data firm Markit explains: | Data firm Markit explains: |
| Despite this, Markit’s latest UK service sector PMI has come in at 56.1 for September, better than the ‘flash’ reading of 55.1 recorded during the month. | Despite this, Markit’s latest UK service sector PMI has come in at 56.1 for September, better than the ‘flash’ reading of 55.1 recorded during the month. |
| That shows solid growth, although still down on the five-year high of 58.8 seen in August. It’s notably better than the eurozone, where service sector activity fell (see earlier post). | That shows solid growth, although still down on the five-year high of 58.8 seen in August. It’s notably better than the eurozone, where service sector activity fell (see earlier post). |
| Firms reported that business continued to pick-up in September. But, growth slowed amid the move back to home-working and the 10pm closure for pubs and restaurants. | Firms reported that business continued to pick-up in September. But, growth slowed amid the move back to home-working and the 10pm closure for pubs and restaurants. |
| Markit explains: | Markit explains: |
| James Fairclough, CEO of AA Cars, says September’s drop in car sales is disappointing, as consumers cut back due to the pandemic: | James Fairclough, CEO of AA Cars, says September’s drop in car sales is disappointing, as consumers cut back due to the pandemic: |
| Karen Johnson, head of retail & wholesale at Barclays Corporate Banking, points out that some people are putting their lockdown savings towards greener vehicles: | Karen Johnson, head of retail & wholesale at Barclays Corporate Banking, points out that some people are putting their lockdown savings towards greener vehicles: |
| Sue Robinson, chief executive of the National Franchised Dealers Association, says supply chain problems amid the pandemic are partly to blame - and warns that a no-deal Br4exit would compound this: | Sue Robinson, chief executive of the National Franchised Dealers Association, says supply chain problems amid the pandemic are partly to blame - and warns that a no-deal Br4exit would compound this: |
| Sales of electric and hybrid cars actually rose in September, though, while petrol and diesel demand slumped. | Sales of electric and hybrid cars actually rose in September, though, while petrol and diesel demand slumped. |
| Diesel was particularly out of demand, with registrations falling 38%, while petrol registrations fell by over a fifth. | Diesel was particularly out of demand, with registrations falling 38%, while petrol registrations fell by over a fifth. |
| In contrast, electric vehicle sales surged by over 180% year-on-year, with plug-in hybrids (which use a battery and an internal combustion engine) jumped by 138%. | In contrast, electric vehicle sales surged by over 180% year-on-year, with plug-in hybrids (which use a battery and an internal combustion engine) jumped by 138%. |
| The SMMT explains: | The SMMT explains: |
| Mike Hawes, SMMT chief executive, adds: | Mike Hawes, SMMT chief executive, adds: |
| UK car sales are on track to slump by nearly a third this year, following the tumble in September. | UK car sales are on track to slump by nearly a third this year, following the tumble in September. |
| The SMMT warns that rising unemployment, and ongoing pandemic restrictions, will hurt the auto industry: | The SMMT warns that rising unemployment, and ongoing pandemic restrictions, will hurt the auto industry: |