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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 means of a sequence of worth rises previously yr.
In contrast with the identical interval final yr, the group recorded a 14.7 per cent improve in whole gross sales and a 9.7 per cent improve 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 means of 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 share level off gross sales development, the corporate mentioned.
The perfect-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 price simply £1. General price 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 number of the firm’s success to having fewer costly objects than rivals, making it simpler to draw clients on the lookout for inexpensive food and drinks at a time when many are combating squeezed incomes and excessive inflation. “We’re working actually exhausting to ensure that clients can nonetheless get worth from us.”
She added that she hoped Greggs might win new enterprise as customers commerce all the way down to beat rising costs.
“We’re a value-led enterprise, so it’s occasions like this once we simply be certain that for these clients that possibly don’t learn about Greggs, or possibly don’t come into us very incessantly, we are able to 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 may very well be a “scarce winner” throughout the price of dwelling disaster “as clients search to commerce all the way down to the extra inexpensive menu in these troublesome occasions”.
Greggs mentioned it had opened 106 retailers thus far this yr and was on the right track to extend its property by 150 shops by the tip of the yr. It at present has 2,271 retailers.
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 preserve prices beneath the federal government’s enterprise vitality worth cap of £211 per MWh for electrical energy and £75 per MWh for fuel.
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