New ranges and better product availability boost sales at Greggs
Greggs has said it “traded well” in its third quarter with like-for-like sales in company-managed shops rising by 5%.
In the 13 weeks to 30 September, total sales climbed by 8.6%.
The company said investment in its new forecasting and replenishment system helped to improve product availability for customers. In addition, seasonal changes to its range proved popular as the company also further developed its Balanced Choice healthier food options.
The third quarter results mean that Greggs’ total sales have grown by 7.8% in the year-to-date with like-for-like sales increasing by 3.9%.
So far this year, Greggs has opened 98 new shops, including 37 franchised units predominantly in transport locations. It has also closed 32 shops, giving a total of 1,830 shops trading at 30 September. For the full year, Greggs expects to open 140-150 shops and close 40-50 to give a net increase of around 100.
Looking ahead, the company said: “As we go into the final quarter of the year we have launched our autumn/winter menu including a new ‘all day breakfast’ wrap and added Thai Chicken Soup to our Balanced Choice range.
“Our investment in greater product availability and service has benefited recent trading. 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 out-turn remain unchanged.”
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