Greggs makes good start to year with like-for-like sales up 3.7%
Greggs has reported making a good start to its trading year with own store like-for-like sales rising by 3.7% in the 17 weeks to 26 April 2014. Total sales grew by 4%.
The bakery chain, which operates almost 1,700 outlets across the UK, said sales growth had been driven by improved availability of freshly made sandwiches, longer trading hours and product upgrades such as an improved coffee blend.
However, it admitted that its year-on-year performance had to some degree benefited from comparisons with weaker trading in the same period last year when sales were impacted by snow in January and March.
Greggs completed 66 shop refurbishments in its ‘bakery food-on-the-go’ format in line with its target of refitting around 200 shops during 2014. It also opened 20 new shops, including 11 franchised units in transport locations, and closed 28 in the period.
Never Miss a Retail Update!The company said it had completed the formal consultation period for its proposals to close 79 in-store bakeries and to improve operational effectiveness in support areas. The majority of these stores are expected to close by the end of the year.
Looking ahead the company said: “Market conditions remain highly competitive but we are encouraged by the performance in the year to date. As a result, we expect to deliver a good first half outcome.
“The second half is likely to be more challenging as we come up against relatively stronger sales comparables and likely cost inflation. Overall we expect to deliver satisfactory financial results for the year and good further strategic progress.”
