FirstGroup bus giant hit by shift to online shopping and road traffic

Shoppers ordering online rather than trawling High Streets is hitting demand for buses, transport giant FirstGroup has admitted.

Its bus revenues fell 1.4% in the first quarter, due to “lower high street retail footfall” plus the impact of more traffic, First said. It is closing or merging bus depots in response.

Those problems on the buses — as well as First’s US coach business Greyhound being hit by “muted” passenger demand — sent like-for-like revenues down 5%, wiping out more takings on US yellow school bus business First Student and the now small UK rail business.

First’s revenues in the first three months of its financial year fell 1.4%.

Last month First formed a joint venture with the Hong Kong metro operator MTR to bid for the South Western rail franchise, currently operated by rival Stagecoach.

After losing many of its rail franchises, sales at First’s rail business almost halved to £1.3 billion in the year to April.

Two thirds of First’s profits are generated in dollars — now worth 10% more in sterling terms since the referendum.

But the company said “the degree to which the net currency benefit... will be offset by more challenging UK economic conditions for our UK operations is uncertain at this stage”.