Greggs delivers success once again as evening trade boosts sales
High street bakery Greggs has reported another quarter of strong sales growth, fueled by new products and extended evening opening hours.
The sausage-roll maker told markets this morning that total sales rose by 10.6 per cent in the third quarter of 2024, with like-for-like sales up five per cent.
This growth was “supported by menu development and further progress in extended trading hours and new digital channels”.
The firm, which operates across the UK, has been winning customers by keeping prices low and also ramping up evening trade.
More than 1,200 sites are now trading past 7pm or later.
It forms part of chief Roisin Currie’s strategic growth plan for the brand, which will ultimately see more stores trade after 4 pm and continued menu expansion.
Shares in Greggs have risen by more than 25 per cent in the last year and more than 19 per cent year to date.
Greggs also provided an update on cost inflation in light of increases in the minimum and national living wage, some easing in headline and food price inflation and ongoing volatility in energy bills.
It said it expected the overall level of cost inflation for 2024 to be towards the lower end of the four to five per cent range previously stated.
Earlier this year, Greggs said it has no plans to raise prices for the rest of this year.
Greggs said it opened 152 new shops and closed 66 shops—including 43 relocations—in the quarter, for a total of 2,559 shops trading on 28 September 2024.
It is on track to open between 140 and 160 net new shops in 2024, including around 50 relocations.
The bakery also said that construction of its new frozen product manufacturing and logistics facility in Derby is progressing in line with its plan and it expects to sign the lease in the fourth quarter of 2024.
Greggs said its full-year guidance remained unchanged.
Jocelyn Paulley, Co-Head of the Retail Sector at international law firm Gowling WLG, said: “Greggs continues to be a beacon of light for the high street and with plans to increase its outlets to 3,000, as well as building two state-of-the-art facilities in the Midlands, the bakery chain is hoping to maintain its momentum.
“The well-established brand means consumers know exactly what to expect and appreciate the affordability and convenience of its offering. The expansion of its partnerships and delivery service has made the business more accessible than ever which has translated into greater sales.
“Not only is the company providing value for money for its customers, but also its shareholders, and will be an attractive proposition for investors wanting a piece of the pie while it consistently delivers a strong balance sheet.”