The Restaurant Group (LON:RTN) posted a statutory loss before tax of £87.7 million on Tuesday in its interim results, sending shares crashing. The British restaurant chain said it would close at least 124 sites of its Frankie & Benny’s and Chiquito brands over the next six years. Like-for-like sales were up 4%, with total sales up 58.2% to £515.9 million, the company highlighted in its results. Like-for-like sales growth was driven by the market outperformance of Wagamama and its Concessions and Pubs businesses, it added. “Our Leisure business delivered a marginal decline in like-for-like sales despite benefitting from the weaker comparatives following last year’s extreme weather and football World Cup,” Debbie Hewitt MBE, Non-executive Chairman, commented in the results. Its Leisure sites include brands such as Frankie & Benny’s, Chiquito and Coast-to-Coast. In the first eight months of the year, 16 sites were closed – 10 Frankie & Benny’s, four Chiquito, one Coast to Coast and one Garfunkel. “We are mindful of the headwinds in the casual dining sector and the meaningful uncertainties created by the potential of a ‘no-deal Brexit’ and are planning with this in mind. However, our business is now better diversified and purposefully positioned to benefit from multiple opportunities for growth,” the Non-executive Chairman continued. The Restaurant Group’s warning of the casual dining sector comes just a week after Boris Johnson asked the Queen to suspend parliament, limiting MPs’ ability of blocking a no-deal departure from the European Union. The uncertainties surrounding the nation’s departure from the European Union were also cited on Tuesday by the BRC and KPMG in their report on retail sales, which “flatlined” in August. Additionally, the Restaurant Group welcomed Andy Hornby in its results as its new CEO, who said that “despite the well documented challenges facing the casual dining sector, the Group’s diversified set of brands provides firm foundations.” Shares in the Restaurant Group plc (LON:RTN) were trading at -12.58% as of 12:27 BST Tuesday.

The British Retail Consortium (BRC) and KPMG said on Tuesday that retail sales “flatlined” in August. The 12-month average dropped to a new low of only 0.4%, the report shows. The report said that with a budgetary Spending Review, the Brexit deadline approaching and a potential general election, the only thing that is certain is additional uncertainty. “Greater economic and political uncertainty has driven down consumer demand,” Helen Dickinson OBE, Chief Executive at the British Retail Consortium, said in the report. The report comes just a week after Boris Johnson asked the Queen to suspend parliament ahead of the extended Brexit deadline. The move limits MPs’ ability to block a no-deal departure from the European Union, throwing the future of the nation into further uncertainty. “While the summer weather gave a small boost to food sales, this was cancelled out by a drop in non-food sales,” Helen Dickinson OBE continued. “Summer discounting and poor footfall have hit in-store sales particularly hard. If the Government wants to avoid seeing further store closures and job losses on the UK high street, they must take action. Last month, fifty retail CEOs wrote to the Chancellor demanding he fix the broken business rates system, allowing businesses to fund vital investment during this unprecedented period of transformation.” Indeed, over the past year, several high street retailers have had to battle against the difficult trading conditions to hit the UK high street. Job cuts and store closures have been widely reported by retailers struggling for survival. “August proved to be yet another incredibly disappointing month for retail, with like-for-like sales down 0.5% and total sales flat-lining at zero. It’s clear that for much of the retail market, efforts are being focussed on preservation, not growth, in this adverse and uncertain climate,” Paul Martin, UK Retail Partner, KPMG, added in the report. Broadly speaking, fashion sales were boosted by back-to-school promotions for children’s fashion and footwear. Online sales outperformed the high street, according to the report, but with a growth as little as 2.2%, showing that even this channel has taken a hit. Food and grocery sales did, however, see year on year growth in August, driven by the Bank Holiday heatwave.

The Lego Group posted a 5% increase in global consumer sales on Tuesday, driven by the particularly strong performance of its LEGO Marvel Avengers sets. The Danish toy production company also revealed a 4% rise in revenue for the first half of 2019 to 14.8 billion Danish crowns. Operating profit amounted to 3.5 billion Danish crowns, declining by 16%, whilst net profit was 2.7 billion Danish crowns, dropping 12% and driven by “significant investments in long-term growth”. The toy maker said that LEGO Marvel Avengers and LEGO Movie 2 sets contributed to consumer sales growth. The group also added that it will continue to invest in China and is on track to having over 140 stores in 35 cities by the end of the year. It also plans to open an office in Mumbai early next year, where the company hopes to expand its presence in India. “We are satisfied with our performance given the transformative shifts which continue to reshape the global toy industry,” the LEGO Group CEO, Niels B Christiansen, said in a company statement. “Against this backdrop, we continue to grow consumer sales and market share in our largest markets,” the CEO continued. “At the same time we’re making upfront investments to create a strong foundation from which to grow in the long term and inspire future generations.” “This includes opening new markets, expanding in China, creating innovative retail experiences and developing exciting new products and play experiences.” “We are pleased with the performance of our evergreen favourites such as LEGO City and LEGO Technic,” said the CEO “We are also excited to explore innovative ways to bring the brick to life through digital play experiences such as new LEGO Hidden SideTM which blends the best of building with the awesomeness of augmented reality.” Last year Legoland, inspired by Lego’s iconic building bricks, was ranked among the unhealthiest tourist attractions.