Greggs Reports Sales Increase Of 7.5% In Early 2017
UK bakery chain Greggs has reported a total sales increase of 7.5% in the first 19 weeks of 2017.
It also reports that like-for-like sales in company-managed shops grew by 3.6% over the same period.
In a statement, the company said that, ‘Customers increasingly recognise the quality and value of our £2 breakfast offer, and we have invested further in capacity to meet this growing demand.
‘Balanced Choice sales continue to grow and we have added lines to this range, including cold-pressed juice drinks and a new selection of freshly-prepared salads and wraps incorporating flavours such as Coconut, Lime and Chilli Chicken.’
Greggs has been investing greatly into its own stores over the year. In the first 19 weeks, it reports that it has refurbished 87 of its stores, and opened 42 brand new stores as well.
After the closure of 14 stores, Greggs says it has a total of 1,792 operational stores.
A Good Start
In terms of the prognosis for the year ahead, the company said that it has ‘made a good start to 2017, although the sales outlook remains uncertain in the context of slowing growth in disposable incomes. Input cost inflation is having a modest impact on margins in the first half of the year as expected, however we have increasing visibility of costs for the second half and anticipate this pressure to ease towards the end of the year.
‘Whilst this pattern will constrain profit growth in the first half of the year we expect to make progress in line with our previous expectations for the year as a whole.’
In February of this year, Greggs reported a 7% growth in sales for the full-year of 2016.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O’Sullivan. Click subscribe to sign up to ESM: The European Supermarket Magazine.