Greggs | UK

Strong start to the year for bakery-chain

Sales levels in larger cities and in office locations continue to lag the rest of the estate but transport locations have shown a marked increase in activity in recent weeks, reports Greggs.
IMAGO / Zuma Wire
Sales levels in larger cities and in office locations continue to lag the rest of the estate but transport locations have shown a marked increase in activity in recent weeks, reports Greggs.

Greggs has traded well in the first 19 weeks of 2022. Like-for-like (LFL) sales in company-managed shops grew by 27.4%. The figure is flattered by comparison with restricted trading conditions in the same period of 2021, says the UK-based company. Total sales in the 19 weeks to 14 May 2022 were £495 million (2021: £378 million).

In the most recent ten weeks to 14 May (when lockdowns in 2021 were easing) like-for-like sales growth has averaged 15.8%, reports Greggs. “We expect this figure to continue to normalize as we start to compare with more robust trading periods in 2021.”

According to an investors statement, sales levels in larger cities and in office locations continue to lag the rest of the estate but transport locations have shown a marked increase in activity in recent weeks. Sales of hot food and snacks are showing particularly strong growth, with chicken goujons and potato wedges proving popular.
 


In the first 19 weeks of 2022 the company opened 49 new shops, including 18 with franchise partners. Recent shop openings include a number of retail parks and new travelbased units at Birmingham and Liverpool airports. In the year to date 6 shops were closed, giving a total of 2,224 shops trading at 14 May (comprising 1,831 company-managed shops and 393 franchised units).
 

Increasing cost pressures expected

“We have made a good start to 2022, with sales in line with our plan and a strong pipeline of new shop acquisitions ahead. Looking ahead, market-wide cost pressures have been increasing and consumer incomes will clearly be under pressure in the in the second half of the year. We will continue to work to mitigate the impact of cost pressures whilst protecting Greggs’ reputation for exceptional value. Whilst considerable uncertainties remain, we are in line with our plan and the Board’s expectations for the full year outcome remain unchanged”, the statement concludes.
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