Member Article

Greggs experience continued sales declines

Sales have fallen at Greggs 2.6% as continued spending “restraint” from customers, and the wet summer impact the pasty chain.

It was a slight improvement on the 3.5% decline in the second quarter, but a smaller recovery than had been expected. The high street baker said sales of its “bake at home” products were blossoming in Iceland, and new Moto motorway services shops showed promise. Greggs have opened 70 new shops over the course of the year, and saw some success in its wholesaling and franchising arms.

Kennedy McMeikan, chief executive of Greggs, said: “Whilst we remain cautious about the economic outlook total sales will continue to benefit from the success of our new shop openings and expansion in wholesaling and franchising. However, we expect consumers to continue showing restraint and now anticipate like-for-like sales to remain negative in the final quarter. We will partially mitigate the impact of this lower like-for-like sales performance through tight control of costs and the increased profit contribution from wholesaling and franchising.

This was posted in Bdaily's Members' News section by Tom Keighley .