Greggs has announced no further price increases in 2023, despite experiencing a slowdown in sales during the third quarter.
- CEO Roisin Currie cites stabilising costs as a reason for maintaining current prices, with future increases potentially dictated by minimum wage changes.
- The bakery chain saw a 5.8% dip in share prices during the summer months due to weather and economic uncertainty.
- A rebound in sales was observed in September, aided by the launch of Greggs’ autumn menu featuring popular seasonal items.
- Greggs plans to continue its expansion, with a focus on supermarket, petrol station, and travel hub locations, alongside strengthened delivery partnerships.
Greggs, the UK bakery chain known for its popular sausage rolls, has decided not to implement any further price hikes in 2023, despite witnessing slower sales in the third quarter. CEO Roisin Currie announced that the company has no plans to increase prices this year. This decision comes as costs are reportedly stabilising more quickly than expected.
Currie explained that although rising wages had previously necessitated price increases, including a 5p rise for the signature sausage roll in July, the company now feels confident in maintaining current prices. However, future price adjustments may be influenced by statutory minimum wage changes expected in the coming year.
During the summer, Greggs experienced a 5.8% drop in its share price, partly due to weaker sales attributed to poor weather, economic uncertainty, and unrest in certain cities, which resulted in damage to a few stores. Yet, the company’s stock has seen a significant increase of over 20% in the past year.
September brought a positive turnaround as sales improved with people returning to work. The introduction of Greggs’ autumn menu, including seasonal favourites like pumpkin spice lattes and a new pumpkin spice doughnut, is anticipated to contribute to further growth.
The company’s expansion strategy remains robust, with over 2,500 outlets nationwide and plans to open up to 160 new shops this year. Greggs aims to strengthen its presence in supermarkets, petrol stations, and travel hubs, complemented by expanded delivery partnerships with Uber Eats and Just Eat.
Greggs remains optimistic about its growth despite challenges, focusing on strategic expansion and menu innovation.
