SHARES in pub group Greene King were down 11 per cent yesterday after it reported a fall in sales and warned challenges remain.

The company said it is “cautious about the trading environment” after like-for-like sales fell 1.2 per cent in the 18 weeks to September 3.

The drop is attributed to a decline in valued food sales.

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The FTSE 250 member said it expects the “challenges of weaker consumer confidence, increased costs and increasing competition to persist over the near term”.

The news affected shares in the bar group’s rivals, with Marston’s dropping seven per cent and JD Wetherspoon down 2.5 per cent.

By midday the FTSE 250 index was down 0.75 per cent at 19,548.70, while the FTSE 100 index stood at 7,362.90.