Greggs sales rise with healthier summer options

Bakery retail chain Greggs posted its third quarter trading update on Tuesday morning, with total sales up 5.6% for the 13 weeks to 1 October and like-for-like sales up 3.4%.

The FTSE 250 firm said company-managed shop like-for-like sales were up 2.8% for the period, and confirmed 145 refits had been completed in the year-to-date.

It had a surplus of new outlets in the year-to-date, with 103 new shops opened and 58 closed, with a target to open around 145 and close 75, and refurbish 200 locations.

Greggs currently had a total of 1,743 locations, with 1,600 company owned and 143 franchised.

“The popularity of our summer menu including an extended range of Balanced Choice salads and yoghurts supported sales growth in the period,” Greggs’ board said in a statement.

“We also saw continued strong growth at breakfast time, helped by our strong coffee offer and value deals.”

The board explained it has now launched an autumn/winter menu which includes new lower-calorie ‘Balanced Choice’ bakes and soups along with a range of new snacks with gluten-free options.

“Chipotle Pulled Beef, Fiery Pulled Chicken and Onion Bhaji burritos are exciting new additions to our successful hot sandwich range,” it said.

“We are making good progress with the first stages of our supply chain investment plan.

“The work to facilitate our new distribution centre in Enfield is now finished and the site will be brought into operation in the coming weeks.”

As a result, Greggs will complete the previously-announced closure of its Twickenham bakery in November.

“Given trading to date and the outlook, our expectations for the full year outturn remain unchanged,” the board said.

“As we look to next year, whilst we anticipate some general industry-wide cost pressures, we expect to make further progress against our strategic plan.”