The UK food-to-go and coffee chain has highlighted extended opening hours, sustained demand for delivery and the recovery of in-store trade as contributing to sales of £694.5m ($847m) for the first half of 2022
Greggs has extended trading hours at approximately 300 stores as it seeks to attract higher footfall after 4pm | Photo credit: Greggs
Greggs has said it is 'well positioned' to navigate the challeges of rising costs and reduced consumer confidence as it continues its growth plans in the UK.
Reporting its half-year results ended 2 July 2022, the food-to-go and coffee chain reported 27% sales growth to reach £694.5m ($847m), which it attributed to extended trading hours and improvements in its digital channels.
Like-for-like sales were 12% higher than the same period in 2019, the company added.
The company has extended trading hours at approximately 300 stores until at least 8pm as it seeks to attract higher footfall to outlets after 4pm. Greggs said that the evening is its strongest-growing trading time, albeit from a low-base.
Greggs has also opened 58 net new stores in the first half of 2022 to reach 2,239 outlets. It anticipates reaching 150 net new stores for the whole of 2022 and is targeting at least that number each year for the next five years.
The company said its strong presence in towns, suburbs and roadside shops had compensated for the slower recovery of stores in city centres and public transport hubs.
In June 2022, Greggs opened its 400th franchised store and said it expects franchised outlets to account for 20% of its targeted 3,000 store footprint by 2028.
Although in-store trade continues to improve, Greggs maintains that the majority of new trade generated through delivery is incremental and holds further growth potential as more stores extend trading hours into the evening.
Despite considerable uncertainties in the economy, Greggs said that its revenue expectations for the full year remain unchanged.
“In a market where consumer incomes are under pressure Greggs offers exceptional value for customers looking for food and drink on-the-go. We are well positioned to navigate the widely publicised challenges affecting the economy and continue to have a number of exciting growth opportunities ahead, with a clear strategy for expansion. We remain confident in Greggs’ ability to deliver continued success,” said Roisin Currie, CEO, Greggs.