UK bakery chain Greggs has defied hospitality business gloom with a 15 per cent rise in gross sales in the newest quarter, regardless of pushing by a collection of worth rises previously yr.
In contrast with the identical interval final yr, the group recorded a 14.7 per cent enhance in complete gross sales and a 9.7 per cent enhance in like-for-like gross sales. Its share worth was up practically 10 per cent to £18.92 in early afternoon buying and selling in London.
The sturdy efficiency got here because the retailer pushed by worth rises of between 5p and 10p throughout its product vary. Store closures on the day of the Queen’s state funeral in September additionally shaved 1 proportion level off gross sales progress, the corporate mentioned.
One of the best-selling Greggs sausage roll now prices £1.15p, up from £1.10p when the final worth rise was launched in Might. In December final yr, earlier than the succession of worth will increase, it value simply £1. Total value inflation for 2022 is round 9 per cent, the retailer mentioned.
Roisin Currie, chief govt of Greggs, mentioned it was “actually pleasing” that the enterprise continues to commerce strongly.
She attributed among the firm’s success to having fewer costly objects than rivals, making it simpler to draw clients in search of reasonably priced foods and drinks at a time when many are scuffling with squeezed incomes and excessive inflation. “We’re working actually laborious to make it possible for clients can nonetheless get worth from us.”
She added that she hoped Greggs might win new enterprise as shoppers commerce right down to beat rising costs.
“We’re a value-led enterprise, so it’s occasions like this once we simply be sure for these clients that possibly don’t learn about Greggs, or possibly don’t come into us very regularly, we will encourage them to come back extra to us,” she mentioned.
Julie Palmer, a companion at Begbies Traynor, mentioned the buying and selling replace prompt Greggs might be a “scarce winner” throughout the price of residing disaster “as clients search to commerce right down to the extra reasonably priced menu in these tough occasions”.
Greggs mentioned it had opened 106 outlets thus far this yr and was on course to extend its property by 150 shops by the tip of the yr. It at present has 2,271 outlets.
It additionally mentioned it had signed new ahead buy contracts to cowl vitality and meals provides for the fourth quarter. It expects that its vitality worth hedging will hold prices beneath the federal government’s enterprise vitality worth cap of £211 per MWh for electrical energy and £75 per MWh for fuel.
