UK bakery chain Greggs has defied hospitality trade gloom with a 15 per cent rise in gross sales in the newest quarter, regardless of pushing by a collection of value rises previously 12 months.
In contrast with the identical interval final 12 months, 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 value 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 through price 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 value rise was launched in Might. In December final 12 months, earlier than the succession of value 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 a few of the firm’s success to having fewer costly objects than rivals, making it simpler to draw prospects on the lookout for reasonably priced foods and drinks at a time when many are combating squeezed incomes and excessive inflation. “We’re working actually onerous to ensure that prospects can nonetheless get worth from us.”
She added that she hoped Greggs might win new enterprise as shoppers commerce all the way down to beat rising costs.
“We’re a value-led enterprise, so it’s occasions like this once we simply ensure for these prospects that perhaps don’t find out about Greggs, or perhaps don’t come into us very regularly, we are able to encourage them to come back extra to us,” she mentioned.
Julie Palmer, a accomplice at Begbies Traynor, mentioned the buying and selling replace recommended Greggs could possibly be a “scarce winner” throughout the price of residing disaster “as prospects search to commerce all the way down to the extra reasonably priced menu in these tough occasions”.
Greggs mentioned it had opened 106 retailers up to now this 12 months and was heading in the right direction to extend its property by 150 shops by the top of the 12 months. It presently has 2,271 retailers.
It additionally mentioned it had signed new ahead buy contracts to cowl power and meals provides for the fourth quarter. It expects that its power value hedging will hold prices beneath the federal government’s enterprise power value cap of £211 per MWh for electrical energy and £75 per MWh for fuel.
