THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Greggs warns that like-for-like sales will remain weak this year

Greggs, the high street bakery chain, saw its like- for-like sales fall by 2.6% in its third quarter as cash-strapped consumers continued to hold back on spending and adverse weather conditions impacted sales.

GENERAL MERCHANDISE

Greggs warns that like-for-like sales will remain weak this year

Greggs, the high street bakery chain, saw its like- for-like sales fall by 2.6% in its third quarter as cash-strapped consumers continued to hold back on spending and adverse weather conditions impacted sales.

In the 14 weeks to 6 October, total sales increased by 5.9% driven by a new shop opening programme and continued success in wholesaling and franchising. The company said its ‘Bake at Home' sales through the Iceland frozen food chain continued to perform strongly as did the new motorway services shops opened in partnership with Moto.

The company opened 70 new shops in the year to date, which was ahead of expectations.

Greggs said the decrease in like-for-like sales was an improvement on the 3.5% decline seen in the second quarter but added that the recovery was smaller than expected.

The company said in a statement: "Consumers continued to show restraint in their spending and the adverse weather in July, followed by flooding in parts of the country at the end of September, also impacted sales in the period."

Although Greggs remains cautious about the economic outlook, the company said its total sales would continue to benefit from its new shop opening programme and expansion in wholesaling and franchising. However, it expects consumers to continue showing restraint and now expects like-for-like sales to remain negative in the final quarter.

Greggs plans to mitigate the impact of this lower like-for-like sales performance through tight cost control and an increased profit contribution from wholesaling and franchising. 

The company added: "We are making the Greggs brand more accessible to customers through our new shop openings and wholesaling and franchising channels and this underpins our strategy to  deliver long-term profitable growth for the benefit of shareholders, employees and the wider community."

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process