Member Article

Greggs announce considerable sales growth

North East high street bakers Greggs have announced a 3.5% growth in sales for the year to date.

Total sales grew by 4% year-on-year in the 11 weeks, despite the accelerated closure of poor performing shops, contributing to the year’s 3.5% overall average.

Own shop like-for-like sales grew by 5.4% in the 11 week period to 13 September 2014, a much improved result from 2013’s 1% decline.

This means that for the year to date like-for-like sales are now up by 3.9% overall.

A positive response from customers to new product initiatives, improved service, better value and investment in shop refurbishments alongside, alongside more favourable trading conditions than expected, are reportedly the reasons for recent success.

In particular, the new Balanced Choice sandwich range and upgrades to the coffee blend were highlighted by Greggs as contributing to the sales increase.

However, whilst 32 new shops have been opened, Greggs have closed 43 poorly performing units and expect total shop numbers, currently 1660, to be down for the year.

153 shop refits have been completed so far this year, with the aim of 200 refits to be completed by the year’s close.

Chief executive, Roger Whiteside, said: “This strong performance reflects a positive response from customers to new product initiatives, improved service, better value and our investment in shop refurbishments alongside more favourable trading conditions.

“Whilst we face tougher comparatives in the final quarter the combination of strong sales performance, lower costs and our outlook for the remainder of the year means that we now anticipate full year profits to be materially ahead of our previous expectation.”