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August 4, 2021updated 14 Nov 2021 3:28pm

Greggs plans to open 100 stores as sales rebound

Greggs operated 2,115 shops, including 343 franchised stores, as of 3 July.

British bakery chain Greggs has revealed plans to open 100 more stores across the UK over the coming months as its sales return to pre-pandemic levels.

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The new stores are expected to create a total of 500 jobs.

In its interim results for the 26 weeks to 3 July, Greggs recorded that it had returned to profit after making a loss last year.

Its statutory pre-tax profit for the period stood at £55.5m, as against a loss of £65.2m a year earlier, surpassing the pre-pandemic profit level of £36.7m.

Greggs’ total sales increased to £546.2m in the first half, up from £300.6m a year ago and £546.3m in the first half of 2019.

The company said that its sales recovery in recent months had been stronger than anticipated, with suburban areas and high streets being strong spots.

Despite this, its sales in shops in public transport hubs and large city centres had lagged.

Greggs said that the outlets where sales were strongest tended to be those accessible by car, many of which were operated by its franchise partners.

As well as opening more stores, the company plans to continue relocating its existing shops to meet the increasing demands of multi-channel growth.

Greggs CEO Roger Whiteside OBE said: “Greggs once again showed its resilience in a challenging first half, emerging from the lockdown months in a strong position and rebuilding sales as social restrictions were progressively relaxed.

“We continue to make good progress with our strategic priorities, growing the shop estate and investing in our digital capabilities to compete in all channels and dayparts of our market.

“Whilst there continue to be general uncertainties in the market, given our recent performance, we now expect [our] full-year profit to be slightly ahead of our previous expectation.”

Last September, Greggs launched a collective consultation with union and employee representatives in an attempt to reduce its employment costs.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.