Greggs sees a notable sales increase, driven by new menu items and extended opening hours.
- The bakery chain reports a total sales increase of 10.6% in the recent quarter.
- There has been a 5% rise in like-for-like sales, attributed to menu and trading hour changes.
- Greggs has expanded evening operations, with over 1,200 branches open past 7pm.
- The company remains optimistic despite economic challenges, maintaining its full-year guidance.
Greggs, a prominent bakery chain, has reported a significant rise in sales for the last quarter, driven by strategic changes in its operations. The company experienced a 10.6% increase in total sales, with like-for-like sales rising by 5%. This growth is attributed to the introduction of new menu items and extended evening opening hours, which have resonated well with consumers.
By extending its evening trading hours, Greggs now operates over 1,200 branches beyond 7 pm. This move aligns with the CEO Roisin Currie’s strategy to boost evening sales and diversify the existing menu lineup, aiming to cater to the evolving demands of their customer base seeking affordability and convenience. Such operational adjustments are crucial as they allow the company to tap into a new market segment, thereby enhancing revenue.
In response to economic uncertainties such as wage increases and fluctuating food prices, Greggs expects cost inflation in 2024 to remain at the lower end of the anticipated 4% to 5% range. Remarkably, the company has decided not to raise prices within this year. This approach underscores Greggs’ commitment to maintaining its price competitiveness while navigating economic fluctuations.
Looking ahead, Greggs plans to expand its footprint further by opening between 140 and 160 new shops in 2024. This includes approximately 50 relocations, indicating their aggressive pursuit of growth across the UK. Additionally, Greggs is making headway in constructing a new frozen product manufacturing and logistics facility in Derby, with leasing agreements anticipated to be finalised shortly.
Amidst these developments, Greggs’ optimism remains undeterred as it holds firm on its full-year guidance, indicating confidence in its ongoing strategies and market positioning.
Greggs’ recent strategic enhancements have successfully bolstered its market position, demonstrating resilience amidst economic challenges.
