Greggs hails strong sales growth
Greggs has said it put in a strong performance in the first 19 weeks of 2023 despite a challenging trading backdrop.
The food-to-go retailer posted a 17.1% like-for-like sales uplift in company-managed shops in the period, which was partially a reflection of the impact of Omicron in the first nine weeks of 2022.
Meanwhile like-for-like sales growth in the ten weeks to 13 May averaged 15.7% and total sales in the 19 weeks to 13 May grew to £609 million from £495 million in the same period last year.
As it continues to develop its menu, Greggs said sales of hot food and snacks such as chicken goujons and wedges are performing particularly well. It has also continued to grow its plant-based offering with a new Vegan Mexican Chicken-Free Bake.
During the period, Greggs opened 63 new shops, including 25 with franchise partners. After closing 26 shops, the retailer had a total of 2,365 stores trading at 14 May. Recent shop openings have included sites at Canary Wharf Station and at Glasgow and Cardiff airports. Greggs is also investing in its Birmingham and Amesbury distribution centres with the aim of creating additional capacity to support new store expansion.
Looking ahead, the retailer said it expects the macro backdrop to continue to be challenging, but that expectations for the full year remain unchanged.
It added: “Although we expect to see ongoing material cost inflation, we have good forward cover on key commodities. Consumer disposable incomes are likely to stay under pressure, but we remain confident that our outstanding value proposition continues to be compelling.”
