Greggs has reported a notable 10% increase in sales, attributed to strategic expansion across the UK.
- The bakery chain plans to open 140 to 160 new shops and relocate others to more advantageous locations.
- New menu offerings and extended hours have contributed to sales growth, despite challenges from summer weather conditions and economic uncertainties.
- Inflation concerns remain, but Greggs anticipates a more moderate cost increase than initially projected.
- Significant investment in logistics and distribution is set to support the company’s continued growth trajectory.
Greggs, a prominent UK bakery chain, has experienced a substantial rise in sales, climbing by 10.6% over a 13-week period ending September 28, compared to the previous year. The increase is largely driven by the company’s strategic endeavours to expand, aiming to introduce 140 to 160 new shops by the end of the year. Additionally, numerous existing stores are being relocated to venues expected to enhance consumer accessibility.
Despite the typical summer slump exacerbated by adverse weather and the general public’s cautious spending following the General Election, Greggs has successfully navigated these challenges. The chief executive, Roisin Currie, highlighted that the return to predictable routines in September had bolstered sales, alongside the rollout of the autumn menu featuring an all-day breakfast baguette and pumpkin spice doughnut.
The organisation is not only broadening its physical presence but is also enhancing its digital reach, with the extension of its over-ice drinks range to 1,000 outlets anticipated by year-end. This expansion is part of a broader strategy to maintain growth momentum through diversified product offerings and increased consumer engagement.
From a financial perspective, while the uncertainty associated with inflation remains, Greggs expects a cost increase toward the lower end of the initial 4-5% projection. The firm has preemptively fixed costs on essentials such as energy, thus stabilising expenses amid broader economic fluctuations. Labour costs, however, remain under scrutiny pending recommendations from the Low Pay Commission.
On the operational side, Greggs is investing in its logistics capabilities, with significant upgrades to its Birmingham distribution centre and a new facility in Derby. The company’s commitment to strengthening its supply chain is underscored by these investments, demonstrating confidence in sustained growth.
Greggs continues to solidify its market presence with strategic expansions and investments, navigating economic uncertainties effectively.
