Greggs maintains positive sales trajectory despite shrinking pent-up demand
Bakery chain Greggs has maintained a positive sales trajectory as restrictions ease, it said in its trading update today, with sales only slightly knocked by shrinking pent-up demand.
The high street retailer last reported its trading performance on 10 May, at which point it had seen a strong recovery in sales levels following the easing of restrictions on non-essential retail across the UK.
Shares edged higher in Gregg’s noon trading, up 1.06 per cent in total, taking its total share price to 2,587.00.
Greggs has forecast increased competition as cafes and restaurants are allowed to compete more effectively with its take-out offer as restrictions continue to lift on indoor dining.
The benefits of pent-up demand for retail has shrunk slightly, however, the retailer managed to bag like-for-like sales growth in company-managed shops when measured against the same period in 2019.
With growth ranging between one and three per cent, according to the retailer, the level of ‘sustained sales’ recovery was stronger than expected.
If the positive sales continue, Greggs said it would have a ‘materially positive’ impact on its full year financial results. It’s interim results will be published on 3 August 2021.