14 May 2024 , 08:39
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Greggs has toasted a robust beginning to the year, boasting a sales surge as it forges ahead with its British high street expansion.
The popular bakery chain revealed a 7.4% jump in like-for-like sales for the first 19 weeks of 2024. The company celebrated reaching a landmark 2,500 shops trading across the nation, having netted an increase of 27 stores after accounting for both openings and closures up to May 11.
Greggs also highlighted the success of its freshly launched iced drinks selection, which is "performing well" and set for an expansion from the current 300 outlets to potentially 700 over the next few months. This new line features coffee, flavoured lemonades, and coolers.
Maintaining its course for the full-year projections, Greggs confirmed it's on track after solid first-quarter trading and continues to predict a 4% to 5% rise in its own costs throughout the year. "We have made a good start to the year with continued like-for-like growth in a challenging market, reflecting the strength of our strategic plan," the group stated.
Chief executive Roisin Currie said staff costs remained the primary driver of inflation in the business. “The majority of cost inflation pressures that we face this year is wages. We put through a wage increase at the start of January.”
Greggs reveals huge January menu shake-up including three new vegan items
When asked about price increases, Ms Currie added: “We continue to keep that under review, making sure that we offer great value to customers.” It comes after figures from the Office for National Statistics revealed on Tuesday morning that regular average wage growth across the UK remained unchanged at 6% in the three months to March.
The update comes after Greggs recently became the latest UK retailer to suffer a systems outage. A raft of its stores were forced to close during one morning last month after technical issues left it unable to accept payments.
The problem impacted shops nationwide, including in London, Sheffield and Birmingham, but it was resolved later in the same day. In their most recent update, Greggs announced that it is "building capacity for further growth in the UK", with plans to open nearly 160 new shops by year's end.
The company reported strong demand for pizza boxes over the past 19 weeks after a dedicated campaign. Popular items include their southern fried chicken goujons and southern fried potato wedges. Furthermore, the group has been diversifying with healthier food offerings, recently launching a veggie pesto and mozzarella pasta dish, alongside a feta and tomato pasta.