A significant 10% surge in sales has been reported by Greggs as they expand their presence across the UK.
- In the last 13 weeks up to September 28, Greggs saw an impressive 10.6% increase in total sales.
- The bakery chain plans to open between 140 and 160 new locations this year, enhancing its UK footprint.
- Despite economic uncertainties, Greggs maintains steady growth through menu innovation and digital sales.
- The company is confident in sustaining its growth trajectory despite current inflation and labour cost challenges.
Greggs, a prominent bakery chain headquartered in Newcastle, has experienced a marked 10.6% rise in sales for the 13 weeks up to September 28, demonstrating a robust growth trend compared to the same period last year. This notable increase is attributed to the strategic opening and relocation of shops across the UK, aiming to foster better market penetration and customer reach.
This year, Greggs plans to inaugurate between 140 and 160 new stores, while relocating existing outlets to more strategic locations. This expansion signifies the company’s commitment to strengthening its market presence and accessibility for consumers. An added factor boosting sales is the introduction of a diversified menu, including items such as the all-day breakfast baguette and pumpkin spice doughnut, alongside extended operating hours and enhanced digital sales capabilities.
Inflation concerns are being managed, with Greggs forecasting a cost increase towards the lower end of their predicted 4-5% range. The company has taken proactive measures by fixing prices on essentials like energy to alleviate cost pressures. Labour costs remain a critical consideration, and Greggs is awaiting next year’s Low Pay Commission’s recommendations to adjust accordingly, although no immediate price increments are planned.
Despite facing slow summer sales due to adverse weather and post-election uncertainties, Greggs reports a strong rebound in September as routine customer activities normalised. The resilience of Greggs’ business model is further illustrated by its quick recovery from disruptions during riots, with affected stores returning to operation promptly, backed by law enforcement cooperation.
Greggs’ operational infrastructure is being bolstered with investments in their logistics network, including redevelopment efforts at their Birmingham distribution centre and expansion projects at Amesbury and plans for a new facility in Derby. These developments aim to support continued growth and adapt to increasing consumer demands, thereby reinforcing Greggs’ long-term growth strategy and market confidence.
Greggs’ strategic expansion and innovative offerings underpin their continued growth and resilience in a challenging economic landscape.
