The UK food-to-go and coffee chain says its ‘outstanding value proposition’ remains compelling for UK consumers as like-for-like sales continue to rise
Greggs reported 17% like-for-like sales growth in the 19 weeks ending 13 May 2023 | Photo credit: Greggs
Greggs has reported sales increasing nearly a fifth year-on-year as affordability and convenience continue to appeal to customers during the cost-of-living crisis.
The food-to-go and coffee chain reported 17% like-for-like sales growth in the 19 weeks ending 13 May 2023, with total sales reaching £609m ($762m).
Greggs said difficult trading conditions in the corresponding period last year, when the Omicron Covid variant negatively impacted UK sales, contributed to its year-on-year revenue growth and sales are expected to ‘normalise’ throughout the remainder of 2023.
Additionally, while pressures on disposable incomes are expected to remain, Greggs’ ‘outstanding value proposition’ continues to attract UK consumers, the chain added.
Greggs opened 63 new shops during the reporting period, but closed 26, to reach 2,365 nationwide, 1,908 of which are company-managed.
The food-to-go and coffee chain said it has a ‘strong pipeline of new shop and relocation opportunities’ for the remainder of the year and plans to open 150 net new stores in 2023.
With a longer-term goal of reaching 3,000 outlets across the UK, Greggs will extend opening hours and delivery availability across its estate this year.
In March 2023 Greggs said it would trial 24-hour drive-thru stores this year.
As its store estate grows, Greggs is also investing in its Birmingham and Amesbury distribution centres to deliver additional logistics capacity, which it said will become available in the second half of 2024.
“We have made a good start to the year with sales in line with plans and continued progress on our strategic initiatives. Looking ahead, whilst we expect the macro backdrop to continue to be challenging, we are confident in making further progress. Consumer disposable incomes are likely to stay under pressure, but we remain confident that our outstanding value proposition continues to be compelling,” Greggs said in a statement.
Greggs achieved 23% year-on-year sales growth to reach £1.5bn ($1.8bn) for the 52 weeks ended 31 December 2022.
In April 2023, Greggs reported significant progress towards its 2025 sustainability targets, including opening 789 Breakfast Clubs, which cater to more than 49,000 children every school day, and reducing food waste from manufacturing by 10% as a percentage of sales.
The food-to-go and coffee chain has also opened 30 of its 50 planned ‘Outlet’ shops, which sell day-old food products at reduced prices, launched its first Eco-Shop in July 2022 and applied sustainability initiatives from the store into more than 250 of its sites nationwide.