Greggs sales pick up following end of heatwave
Bakery chain Greggs said that a decline in like-for-like sales had slowed in its third quarter as trade improved in August and September from July when the hot weather kept customers away.
In the 13 weeks to 28 September 2013 like-for like sales fell by 0.5% year-on-year, which was an improvement on the 2.9% decline seen in the first half of the year. Total sales grew by 3.6% driven by new shop openings and continued growth from the retailer’s franchised shops.
This means that in the year to date total sales are up by 3.5%, with like-for-like sales down by 2.1%
Greggs chief executive Roger Whiteside said: "We are encouraged by the recent improvement in like-for-like performance, although with consumer disposable incomes still under pressure we remain cautious. Cost inflation is in line with our expectations and the group's cash position remains strong. Our overall outlook for the full year is unchanged.”
Greggs, which operates 1,700 stores, has refitted 141 shops so far this year and plans to complete 215 refurbishments in the full year. It now expects no increase in net shop numbers as openings match closures.
Whiteside added: “We have made good progress in developing our strategic plan and our focus on the 'Bakery food-on-the-go' format. Customers are enjoying the contemporary new look, easy to navigate range and the provision of seating wherever possible."
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