Greggs lifts store target to 3,000 despite posting first annual loss in 36 years
The bakery giant anticipates the pandemic will create new opportunities on the high street.
Despite posting its first annual loss as a listed company, Greggs has lifted its target for UK stores, anticipating that the pandemic will create new opportunities on the high street.
According to their latest financial results, the bakery giant revealed plans to open around 100 new bakery outlets this year, on top of its 2,078 existing shops. Last year, it opened 84 and closed 56.
“Shops accessed by car have been the strongest performers during the Covid crisis and these location types already formed most of our new shop pipeline. This gave us the confidence to restart our new shop opening programme in the second half and we are targeting a rapid return to previously planned growth levels of circa 100 net new shops for the year ahead,” CEO Roger Whiteside explained.
Greggs said it now hopes to eventually have 3,000 stores in the UK, up from a previous target of over 2,500 a year ago.
“In addition, new opportunities now exist in previously underrepresented locations such as central London and mass transport hubs where availability and rental levels will now make those locations more accessible. Similarly, relocation opportunities to expand into bigger, better shop space are expected in existing locations that will support our continued drive to improve the quality of the estate and develop new opportunities with additional seating,” Whiteside added.
Greggs reported a £13.7 million loss for 2020 after sales slumped due the pandemic, saying it was its first annual loss since it listed on the stock market in 1984, which it flagged earlier this year.
Trading in 2021 so far, it said, was better than expected given the extent of lockdowns.
