Member Article

Greggs to strengthen South East presence following continued rise in sales

High street baker Greggs has reported a strong trading performance for Q3, delivering increased sales, whilst reaffirming plans to further its presence in the South East.

The company revealed that total sales grew by 5% in the 13 weeks to 3 October 2015 and have grown by 5.1% in the year to date.

In a trading statement released this morning, Greggs went on to disclose plans for expanding its distribution network, particularly in the south-east of England where its existing capacity is most constrained.

As a result Greggs has recently acquired a freehold distribution depot adjacent to its existing bakery in Enfield. The total investment, including conversion works, is likely to be around £13m and we expect that the facility will be brought into use in the second half of 2016.

A statement regarding Greggs’ outlook for the year read: “Market conditions remain favourable with low cost pressures and a stronger consumer environment. We expect this to continue through to the end of the year after which increases to wage rates will drive greater inflationary pressure.

“Our standard rate for hourly-paid shop staff is already above the National Minimum Wage and we will maintain a competitive position in the market going forward. Our sales performance is slightly ahead of our previous plan and, whilst comparatives will stiffen further in the fourth quarter, sales will benefit from additional shop openings.

“As a result we expect to deliver good growth for the year, slightly ahead of our previous expectations, and further progress against our strategic plan.”

Greggs’ seasonal range for Halloween is back in shops, including the popular Bat Biscuit and Spooky Ring Bun.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →