High street baker Greggs has announced a dip in sales and profits as it seeks to rebalance the business towards long-term sustainable growth.
The baker announced like-for like sales were down 2.9 per cent as pre-tax profit fell £4.6m to £11.4m in the first half of 2013.
The companies H1 performance points strongly towards a restructuring process being underway, as 19 new shops opened and sales rose by 3.4 per cent to £362m.
Stewart Baxter, Director of Mesh Marketing, comments: “Greggs was one of a select few high street names to do very well out of the recession. As shoppers’ spending shrank, many found solace in Greggs’ savoury snacks.
“But now the good economic times have started to roll, the lure of the sausage roll has waned.
“Greggs’ success as a purveyor of cheap treats saw it expand quickly to nearly 1,700 stores. But its bargain image now risks being more of a burden than a boon.”
The baker said in a statement that it must make the transition to the ‘food on the go’ (FOTG) market as 72 per cent of people are now choosing to stop off for a quick meal or snack.
It says that it plans to add to its sizeable store portfolio and intends to improve the overall quality and re-shape its estate in line with consumer trends.