Greggs posts steady sales growth and expects cost headwinds to ease


Greggs today posted five per cent growth in like-for-like third-quarter sales.

Total sales swelled by 8.6 per cent as the baker closed 32 shops and opened 98 new ones. Over the year sales grew by 7.8 per cent and 3.9 per cent on a like-for-like basis, City AM reports.

Greggs said it expects “headwinds” from increased costs to ease towards the end of the year.

The baker said its shop estate stood at 1,830 outlets at the end of September, of which 194 were franchised. The firm said it expects to open 140-150 stores during the year and close 40-50.

Some 120 of Greggs’ stores have been refurbished so far this year, the company said, putting it on track to complete a total of 130 by the year-end.

The firm also revealed a new autumn range that included an all-day breakfast wrap and Thai chicken soup.

“Our investment in greater product availability and service has benefitted recent trading,” the bakery chain said.

“As we have previously indicated, food ingredient cost pressures are a headwind, although we continue to expect that the rate of increase will begin to ease towards the end of the year. Accordingly, our expectations for the full year outturn remain unchanged.”