// Gregg’s total sales rise 14.6% over the 13 weeks ended 1 October
// The high street bakery chain said it had been trading well in an environment “where cost pressures are significant
Greggs said it traded well in its latest quarter, showing its resilience against the backdrop of a worsening cost of living squeeze, putting it on track to meet full-year expectations.
Confidence levels among Britain’s consumers sank to a record low last month with inflation reaching 9.9% in August but despite this, the bakery chain known for its sausage rolls, and steak bakes said its total sales rise 14.6% over the 13 weeks to Oct. 1 year-on-year, with like-for-like sales in company-managed shops up 9.7%.
After an especially strong staycation boost to sales in 2021, year-on-year growth had “moderated” in August as anticipated, the business said.
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However, “momentum returned” in September, with the chain’s store closure on 19 September for the Queen’s funeral resulting in a hit of one percentage point to like-for-like sales growth.
Looking forward, Greggs said the outlook for cost inflation for the year was consistent with its previous guidance of roughly 9% overall and added it now holds an “appropriate level” of forward purchasing cover in respect of its fourth quarter requirements for key food and energy commodities.
“We also hold significant energy cover for the first quarter of 2023, with average costs expected to be below the level of the recently-announced price cap,” said Greggs.
The popular bakery chain said it had been trading well in an environment “where cost pressures are significant and our outstanding value-for-money positioning is ever-more important to consumers.”
While there was still “considerable uncertainty in the economy as a whole,” Greggs said it was trading in line with expectations and anticipated the full year outcome to meet anticipated targets too.
Approximately 90 new shops opened in the year to date, with the business anticipating around 150 openings in total this year.
Around 40% of the new shops will be run by franchise partners, the Newcastle-based business said.
Greggs has previously said this setup allows it to access locations such as motorway service areas, petrol filling stations, educational establishments and smaller high street convenience sites.
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