Greggs has reported 7.4% like-for-like (lfl) sales growth in company-managed sites in the first 19 weeks of 2024, with ‘good progress’ across all channels.
Delivery sales, evening trade, and increased participation in the Greggs app all supported transaction volume growth, resulting in total sales of £693m for the 19 weeks to 11 May.
This compares to £609m in the comparable period in 2023.
Greggs’ new over-ice drinks range – including coffee, flavoured lemonades, and coolers – is currently available in 300 shops and performing well. It will be rolled out to up to 700 in the coming months.
Pizza boxes have also been in strong growth following a dedicated campaign, with hot food such as the chicken goujons and potato wedges continuing to perform well.
Greggs continues to extend its range of healthier options with items such as the vegetarian Pesto and Mozzarella Pasta and Sweet Potato Bhaji and Rice Salad Bowl.
The food-to-go retailer further reported 27 net openings – including 15 with franchise partners – during the period and recently marked the 2,500-shop milestone. This comprises 1,986 company-managed and 514 franchised units.
Recent openings include sites at London’s Embankment station, four shops within Tesco, and three within Sainsbury’s, with the latter including two petrol filling station locations.
The pipeline for the remainder of the year is strong, with further opportunities with supermarket group. Greggs remains confident in its expectation of 140-160 net openings for the full year.
Cost inflation expectations remain at 4-5% on a lfl basis. Investments to increase supply chain capacity are progressing well as Greggs builds capacity for further growth in the UK.
This includes good progress on the retailer’s investment into its Birmingham and Amesbury distribution centres, which will deliver additional logistics capacity by the end of 2024. The addition of a fourth production line at Balliol Park in Newcastle has been commissioned and will increase production capacity at the site by 35% over time.
Greggs is also progressing with developing two new sites in the Midlands, which are expected to be operational in late 2026 or early 2027. These will support the longer-term growth potential of the business.
The new Derby facility will increase manufacturing capacity while supporting expansion of the logistics network capacity, whereas the new facility in Corby/Kettering will extend logistics capacity to c3,500 shops and deliver efficiencies through semi-automated storage and picking solutions.
