Greggs: trade boosted by improved service and availability

Greggs has said its new forecasting and replenishment system has boosted product availability for customers.

The food-to-go business said trading had benefited from investment in greater product availability and service, reporting total sales up 8.6% in the 13 weeks to 30 September. Like-for-like sales through company-managed shops rose 5% over the period.

Greggs said investment in its supply chain was progressing, and that it was focusing on redeveloping its Leeds bakery to consolidate manufacturing of small cakes and muffins. The business is to trial a new supply chain system in two sites ahead of broader roll-out next year.

Total sales have grown 7.8% in the year-to-date, with like-for-like sales up 3.9%. Over the period, the business has opened 98 new shops and closed 32, giving it a total of 1,830 shops trading, as of 30 September. The business expects to open 140-150 shops and close 40-50 in the year as a whole, a net increase of around 100.

Greggs reported it had just launched its autumn/winter menu, including adding a Thai Chicken Soup to its Balanced Choice range and a new ‘all day breakfast’ wrap.

The business, which this week admitted it had increased the price of its sausage rolls and breakfast baps, said food ingredient cost pressures were a headwind, but added that it expected the rate of increase to begin to ease towards the end of the year.

“Accordingly, our expectations for the full year remain unchanged,” it stated.

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