Greggs has achieved a notable increase in sales, crediting new menu items and extended operating hours.
- Total sales rose by 10.6% in the last quarter, with like-for-like sales increasing by 5%.
- The push for broader evening trading has seen over 1,200 Greggs branches staying open past 7pm.
- Economic conditions have prompted cost management, keeping inflation forecasts at the lower end of 4% to 5%.
- Greggs is on track to open 140 to 160 new outlets this year while advancing its facility in Derby.
Greggs has reported an impressive quarter of sales growth, attributing this success largely to the introduction of new menu offerings and an expansion of its evening trading hours. The bakery chain’s total sales surged by 10.6%, with like-for-like sales growing by 5%, reflecting the effectiveness of its strategic adjustments.
A significant part of this growth strategy involves extending the trading hours of over 1,200 of its branches beyond 7pm, thereby targeting evening sales more aggressively. This move aligns with CEO Roisin Currie’s vision to capitalise on the potential of evening markets and diversify Greggs’ menu options, appealing to a wider customer base seeking affordability and convenience.
Cognisant of the prevailing economic conditions, Greggs has addressed cost inflation driven by recent wage increases and fluctuating food prices. The company expects cost inflation for 2024 to remain towards the lower end of the forecasted 4% to 5% range. Previously, Greggs indicated it had no immediate plans to implement price hikes within the year.
Further bolstering its growth trajectory, Greggs plans to open between 140 and 160 new shops in 2024, with approximately 50 being relocations. This expansion is facilitated by ongoing construction of a new frozen product manufacturing and logistics facility in Derby, with the lease expected to be finalised in the current quarter.
Despite the economic fluctuations, Greggs remains confident, maintaining its full-year guidance unaltered. This steadfast approach signifies the chain’s robust strategy amidst market unpredictability and its commitment to sustaining growth and resilience in the retail sector.
Overall, Greggs’ strategic innovations and expansion plans have fortified its market position despite economic challenges.
