Greggs sales up 5.2%
The bakery chain reported that total sales grew 5.2% in its fourth quarter trading update in the 52 weeks ended January 2, 2016. Company-managed shop like-for-like sales rose 4.7%, with a recorded growth of 2.3% in the fourth quarter.
Chief Executive Roger Whiteside, said, "2015 saw us deliver another excellent year of progress as we continue to transform Greggs into a modern, well-invested food-on-the-go retailer."
"We anticipate that we will report full year results for 2015 in line with our previous expectations. In the year ahead we will continue with the implementation of our strategic plan to enable the business to compete more effectively in the food-on-the-go market."
According to the company, fourth quarter sales slowed as it came up against stronger comparatives and the impact of weaker footfall in some shopping locations. Sales over the Christmas period were in line with the overall trend for the fourth quarter.
"Sales growth has been particularly strong in sandwiches and drinks, including our healthier options 'Balanced Choice' range including new salads and 'no added sugar' drinks," the report said.
"The new hot food menu, with an improved hot sandwich range and fresh soups, is also selling well as customers become increasingly aware of our new food-on-the-go options. Seasonal favourites such as our award-winning mince pies and Festive Bake made a strong contribution to sales over the Christmas and New Year period. Customer demand for breakfast-on-the-go continues to make this our fastest growing part of the day with sales of coffee continuing to grow strongly. We plan to add 'flat white' and an improved 'mocha' to our coffee menu early in the New Year."
Greggs opened 122 new shops (including 61 franchised units) and closed 74, growing the estate to 1,698 shops trading as at 2 January 2016, and now has a network of 105 franchised shops operated by partners in travel and other convenience locations.
The chain said that it expects it will report full year results in line with previous expectations when it makes its preliminary announcement on 1 March 2016.
