COFFEE CHAIN FINDS IT A GRIND

Coffee chain Costa has been caught up in the high-street slowdown.

The industry giant said sales in stores open at least a year dropped 2% in the past three months, reflecting “general retail market conditions” and fewer people out shopping.

But a wave of store openings – plus installing Express coffee machines in a host of locations – meant Costa’s total UK sales were up 5.2%.

It comes as owner Whitbread presses ahead with plans to make Costa a separate stock marketlisted company. Whitbread’s budget hotel chain Premier Inn saw sales dip 0.9% in the past three months.