With a challenging third quarter, Greggs’ CEO Roisin Currie announced a halt on price hikes for 2023, projecting optimism for future growth.
- Greggs is managing costs effectively, with price stability marking a constructive turnaround from earlier inflation impacts.
- Sales dipped by 5.8% this summer due to economic uncertainty and adverse conditions, yet Greggs’ stock saw a 20% rise over the year.
- The autumn menu brings renewed consumer interest with seasonal favorites, driving optimism for continued sales recovery.
- Expansion remains a priority as Greggs plans to broaden its presence in key locations through new outlets and partnerships.
In the current economic climate, Greggs has chosen to halt any further price increases for 2023, according to CEO Roisin Currie. This decision comes despite cost pressures stabilizing more rapidly than initially expected. Earlier in the year, inflation primarily driven by increased wages led to price adjustments, including a 5p rise in the cost of their popular sausage rolls. Currie acknowledges that future price changes could still be influenced by statutory minimum wage increases anticipated next year.
The third quarter saw a decline in sales attributed to several factors, including poor weather conditions, economic uncertainty, and unrest affecting specific locations. These elements contributed to a 5.8% fall in Greggs’ share price over the summer, now valued at £29.42. Notably, the stock has overall gained more than 20% over the past year, reflecting investor confidence in the company’s resilience and strategic direction.
Sales rebounded in September as consumer activity increased with workers returning from summer breaks. Greggs is capitalizing on this positive trend with the launch of its autumn menu, featuring highlights like pumpkin spice lattes and a new pumpkin spice doughnut, which are expected to attract and retain customer interest.
Moreover, Greggs is pressing forward with its expansion strategy, planning to open up to 160 new outlets in 2024, strengthening its nationwide presence across supermarkets, petrol stations, and travel hubs. Strategic growth continues through enhanced delivery partnerships with prominent platforms such as Uber Eats and Just Eat, positioning the company advantageously in the evolving retail landscape.
Financial analysts remain optimistic about Greggs’ long-term growth prospects. Some forecasts suggest a potential 10% increase in pre-tax profits for the year, underscoring the company’s strategic resilience and adaptability in a fluctuating market environment.
Greggs remains steadfast in its strategic goals, balancing growth with stability amid challenging market conditions.
