Income for the UK's biggest nightclub companies has fallen for the fourth year running, as the nighttime economy turns increasingly to bars.
Turnover from the top 100 nightclubs in the UK has fallen five per cent over the past year to £325m, according to figures from Ortus Secured Finance.
This marks the fourth successive decline since 2013/2014, when the top 100 clubs brought in £428m.
The growth of late-night bars and pubs is thought to be the main reason for the decline, owing to the Licensing Act of 2005 which allowed more venues to open later.
Jon Salisbury, managing director of Ortus Secured Finance, said: “The decline of the nightclub sector shows no signs of ending, and that’s hugely worrying for a key part of Britain’s night-time economy.”
“Nightclubs can still be a very profitable enterprise, so long as they’re able to keep up with what the market expects from them – a dated nightclub is often a failing nightclub.”
Ortus also suggested that clubs were finding it increasingly difficult to access finance in order to overhaul their premises in keeping with consumer demands.
“It’s vital that clubs are able to access finance to make sure interiors, facilities, lighting and sound systems, and even roof terraces can all compete with the latest entrants and the biggest names in the market.”
However, the decline has slowed slightly since last year when the top 100 companies saw turnover drop nine per cent.