In a flourishing period, Greggs, the renowned UK bakery chain, reported a 10% sales increase, attributing growth to strategic expansions and innovative offerings.
- Over a recent 13-week period, Greggs experienced a substantial 10.6% rise in total sales, alongside plans to open up to 160 new locations nationwide.
- The bakery giant has bolstered its menu with seasonal items and extended store hours, significantly boosting digital sales.
- Despite economic pressures, Greggs maintains stable prices and anticipates cost inflation towards the lower end of expectations.
- The company continues to enhance its logistics network, aiming to strengthen its supply chain for future growth.
Greggs, a prominent bakery chain based in Newcastle, has announced a remarkable 10.6% increase in sales over a recent 13-week span compared to the previous year. This uptick in sales underscores the company’s successful strategy of expansion and product diversification, which includes plans to inaugurate between 140 and 160 new outlets this year, relocating numerous existing stores to more advantageous locations.
Capitalizing on innovative menu additions and longer store operating hours, Greggs has experienced a significant uptick in its digital sales. Notably, the company’s autumn menu, featuring items such as an all-day breakfast baguette and a pumpkin spice doughnut, has been well-received by customers. Furthermore, Greggs plans to expand its over-ice drinks selection to 1,000 retail outlets by year-end.
Amid the challenges of soft summer sales due to unfavorable weather and socio-economic factors like the General Election and urban riots, Greggs has shown resilience. The business reported a stronger performance in September as consumers returned to their regular routines post-summer.
Maintaining a forward-looking approach, Greggs fixed future energy costs, anticipating inflation at around 4%—the lower boundary of their forecast. Though no immediate price hikes are planned, CEO Roisin Currie highlighted that labor costs remain a significant focus, pending the Low Pay Commission’s upcoming recommendations.
Investments in logistics are a priority for Greggs, as evidenced by the redevelopment of its Birmingham distribution hub and expansions in Amesbury. These efforts are part of a broader strategy to support long-term growth by enhancing supply chain capabilities, bringing new shops closer to customers, and maintaining cost-effectiveness. The company expressed confidence that its annual financial results will align with prior forecasts, underscoring a commitment to growth and value provision in the current uncertain economic climate.
Greggs remains confident in its growth strategy, combining store expansions, innovative products, and cost management to strengthen its market position.
