Focaccia-style pizzas help drive 7.3% Greggs growth

A strong summer performance in the breakfast market and from new products including focaccia-style pizzas have contributed to sales growth at Greggs.

Total sales rose 7.3% in the 13 weeks to 29 September 2018, with like-for-like sales from company-managed shops up 3.2% over the period. Total sales have risen 5.9% in the year-to-date.

Greggs stated it had traded well in the particularly hot weather against a strong comparative period in summer 2017, when total sales rose 8.6% and sales through company-managed shops rose 5%.

“Our drinks range and new focaccia-style pizzas proved popular over the summer months,” stated the business. “We continued to see growth at breakfast time, helped by the expansion of our value deals and our wide selection of freshly-ground Fairtrade coffees.”

In the year-to-date, the company has opened 93 shops, including 35 franchised units mainly in transport locations. Greggs has closed 35 shops, giving it a total of 1,912 shops trading at 29 September – 1,677 company-owned shops and 235 franchised units.

For the year as a whole it expects around 100 net openings, with around 60 planned to be with franchise partners.

Greggs said investment in its supply chain had continued, with the commissioning of its consolidated manufacturing platforms in Newcastle, Leeds and Manchester progressing in the fourth quarter.

The business, which announced a drop in profits in the first half of the year, said its expectations for the full year remain unchanged.

“We were pleased with our trading performance during a period that included a long spell of hot weather, which made sales patterns more difficult to predict, Greggs stated. “This, and the resulting mix of sales, led to a lower-than-normal trading margin in the first part of the quarter, offset by improved trading as we came into September.”

My Account

Spotlight

Most read

Social