Greggs, a prominent high street bakery, has reported significant financial growth for the first half of 2023.
- Pre-tax profits soared to £80 million, a noticeable increase from the previous year’s £55.8 million.
- The company’s sales marked a 21.5% rise, reaching £844 million, with like-for-like sales up by 16%.
- Despite economic uncertainties, Greggs is moving ahead with plans to expand by opening new shops.
- The strategy includes expanding trading hours and enhancing digital participation through the Greggs app.
Greggs, a well-known bakery chain, has announced a massive jump in its pre-tax profits, achieving £80 million for the 26 weeks leading to July 1st, 2023. This marks a significant rise from the £55.8 million recorded during the same timeframe the previous year. The firm attributes this success to what it describes as ‘strong trading momentum,’ echoing a resilient performance amid ongoing economic uncertainties.
Sales for Greggs have also experienced a substantial increase, showing a 21.5% growth to total £844 million. Within this increase, like-for-like sales, which account for stores that have been open for at least a year, have climbed by 16%. Despite these positive figures, Greggs has maintained cautious expectations for the entire fiscal year’s outcome, acknowledging ‘uncertainties in the economic outlook.’
In response to this fruitful financial period, Greggs is pressing forward with its strategic expansion plans. The company aims to open 150 new outlets in 2023, having already launched 94 new shops in the first half of the year alone. This ambitious growth strategy is complemented by extended trading hours, with a particular focus on evening operations, alongside efforts to boost digital engagement through their app.
Roisin Currie, Chief Executive of Greggs, articulated the company’s commitment to delivering exceptional value to consumers who continue to face economic pressures. She remarked, ‘With consumers remaining under pressure, we continue to offer exceptional value, which is reflected in our performance and growing market share.’ Currie emphasized Greggs’ vision, highlighting the ongoing expansion of shop numbers, the successful extension of trading hours, and an increased participation in their proprietary app as key drivers of their growth strategy.
Moreover, as part of their expansion strategy, Greggs plans to establish standalone cafés in collaboration with Sainsbury’s. This collaboration aims to create new café experiences within petrol station garages and retail locations, focusing on ‘coffee-style operations.’
Greggs’ robust performance and strategic expansions underline its resilience and adaptability amidst economic challenges.
