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Greggs says healthy snacks help sales beat forecasts
Greggs has reported stronger than expected sales for its third quarter trading period with product promotions helping to bring in customers.
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Conlumino senior consultant George Scott said the “good times continue to roll” for Greggs as its Balanced Choice options meet demand for tasty, healthy food.
Additions to the menu for autumn include chicken curry soup and peri peri chicken flatbread.
The group has reintroduced a Halloween range including the popular Bat Biscuit and Spooky Ring Bun.
The firm is also expanding its breakfast offering and adding more seating into its branches to compete with the proliferation of coffee shops and other “food-on-the-go” outlets.
Greggs says its has completed 158 shop refurbishments and is on track to complete around 200 shops this year.
The baker, which boasts ten Coventry stores stretching from the city centre to Jardine Crescent, claims the Government’s introduction of a “national living wage” next year could change its prices.
In a trading update, the company said: “Product initiatives across the day combined with our great value deals continue to drive increased customer visits and transaction values”.
The Newcastle-based company has opened 65 shops in 2015 but it has closed 47.
It has acquired a freehold distribution depot near its bakery in Enfield to cater for growth potential, particularly in south-east England where its existing space is facing pressure.
“Our sales performance is slightly ahead of our previous plan and, whilst comparatives will stiffen further in the fourth quarter, sales will benefit from additional shop openings”.
“Market conditions remain favourable with low cost pressures and a stronger consumer environment”.
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The baker current pays its staff a standard rate of £7.11 an hour – 41p higher than the current minimum wage. “As a result we now expect our shop numbers for the full year to increase by a net 50-60 overall”.