​Greggs reports an increase in sales in the latest quarter

Britain's leading bakery chain, Greggs, has announced an impressive 20.8% sales surge in the recent quarter, bringing the total sales increase for the 13 weeks up to 30 September compared to the same period the previous year. The company attributes this rise to multiple factors, including easing cost inflation across various areas.

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Greggs has shown considerable growth, adding 82 new shops this year alone. The company's expansion strategy now boasts 2,410 outlets across the UK. Their ambition doesn't stop there, to reach 3,000 bakeries.

Over the past 12 months, the bakery chain has introduced 144 new stores and, unfortunately, had to close 62. For 2023, they anticipate launching between 135 and 145 new outlets.

Earlier this year, they revealed plans to expand their store count and extend their operational hours. A significant part of this strategy includes targeting bustling commuter zones. New openings in prime locations such as London's Canary Wharf station and the airports of both Cardiff and Glasgow testify to this strategic move.

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Despite the previous price increases in June, where some products saw a rise between 5p and 10p, Greggs is determined to hold off on further price hikes until after Christmas. This decision comes after noticing the stabilised prices of commodities like dairy and vegetable oils and less volatile energy prices than last year. However, Roisin Currie, the CEO of Greggs, did not shy away from addressing the ongoing concerns of market inflation, especially staff wages (which comprise 40% of Greggs' costs) and the costs of meat and other proteins. A notable problem is the upcoming legal minimum wage increase, set to rise by over 5% in April next year.

Russell Pointon of Edison Group highlighted Greggs' strategic initiatives, backing up the brand's success. He mentioned their emphasis on space expansion, the introduction of new menu items, and a focus on evening trade, which now constitutes 8.8% of all their business after 16:00. The collaboration with delivery services Uber Eats and JustEat further underlines the company's dedication to adapt to changing consumer preferences.

Furthermore, Greggs has been capitalising on the digital front, gaining more patrons ordering through its app and fruitful partnerships with JustEat and Uber Eats.

Roisin Currie, while acknowledging the inflation in their supply chain, emphasised Greggs' value proposition to its customers. She said, "When someone is pondering over where to grab their breakfast, we believe they are leaning towards us due to the incredible value we offer."

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Sources:

1. Greggs to open 150 shops and extend opening hours
2. UK's Greggs not planning to raise prices before Christmas - CEO
3. Greggs keeps prices on hold as sales leap and it opens new shops
4. GREGGS SALES SKYROCKET AS COST INFLATION EASES
5. Greggs sales jump as cost increases ease back
6. Greggs on track for record shop openings as evening trading bolsters sales