Amid a slowdown in sales during the third quarter, Greggs has announced that it will not implement further price hikes this year.
Stabilising costs and a strategic outlook provide a measure of optimism for the bakery chain, which is also planning to introduce new menu items this autumn.
CEO Roisin Currie confirmed there are “no plans to put up prices for this year,” thanks to faster-than-anticipated stabilisation in costs.
Earlier in 2024, Greggs had raised prices due to inflation, driven primarily by escalating wages. For instance, the beloved sausage roll saw a 5p increase in July.
Despite these cost management efforts, Greggs experienced a dip in sales over the summer, leading to a 5.8% decline in its share price, now standing at £29.42.
Currie noted that weaker sales in July and August were mainly due to adverse weather, economic uncertainty, and damage to stores in several cities.
Sales showed signs of recovery in September as more people returned to work.
Anticipating further growth, Greggs is set to launch its autumn menu featuring seasonal favourites like the pumpkin spice latte and a new pumpkin spice doughnut.
With over 2,500 outlets in the UK, Greggs plans to open up to 160 new shops this year.
The bakery chain is focusing on increasing its presence across supermarkets, petrol stations, and travel hubs.
Greggs has also extended its delivery partnerships with services like Uber Eats and Just Eat, aiming for broader market reach.
Despite recent challenges, analysts remain optimistic about Greggs’ long-term growth.
Some forecasts even predict a 10% increase in pre-tax profits for the year.
While inflationary pressures have eased, future price adjustments may still be influenced by potential changes in the statutory minimum wage.
Maintaining customer loyalty will be crucial, especially as economic uncertainties persist.
Greggs’ decision to hold prices steady amidst fluctuating sales figures demonstrates strategic foresight.
With new menu offerings and expansion plans on the horizon, the bakery chain remains cautiously optimistic about its growth trajectory.
Greggs’ decision to hold prices steady amidst fluctuating sales figures demonstrates strategic foresight.
With new menu offerings and expansion plans on the horizon, the bakery chain remains cautiously optimistic about its growth trajectory.
