Greggs posts strong Q3 sales growth despite impact of hot weather
Food-on-the-go retailer Greggs has reported an uplift in sales in its third quarter despite the challenges posed by the long spell of hot weather in the period.
In the 13 weeks to 29 September, total sales climbed by 7.3% while company-managed shop like-for-like sales increased by 3.2%.
Commenting on the performance, Greggs said: “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. 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.”
Greggs said its drinks range and new focaccia-style pizzas proved particularly popular in the period. It also saw sales growth in its breakfast time offering which benefited from an extended range of deals.
Looking ahead, Greggs said its expectations for the full year remain unchanged. The company is continuing to invest in its supply chain with the commissioning of new consolidated manufacturing platforms at its Newcastle, Leeds and Manchester sites.
Greggs has opened 93 new shops and closed 35 in the year to date. This meant there were 1,912 shops trading at the end of the period. The retailer expects to achieve around 100 net new openings in 2018.
