Greggs on a roll: Baker will boost its UK sites to 3,000 as later opening proves a hit with steak bake lovers
Steak bake favourite Greggs said it expected to become a “significantly larger” business as it announced plans to grow its presence to 3000 sites following stellar sales figures.
The budget bakery chain saw total sales up 23 per cent to £1.5bn in 2022, compared to £1.2bn the previous year, as consumers craved the brand’s new food offering of pizza and chicken goujon share boxes.
Greggs, which is also home to the vegan sausage roll, also saw pre-tax profit up 1.9 per cent to £148.3m compared to £145.6m in 2021.
The high street favourite also said that a decision to trade after 8pm or later has boosted earnings for the year – with 500 shops now open past its traditional 6pm closing time and further development planned for 2023.
Roisin Currie, chief executive of Greggs said: “We have an exciting, ambitious plan for the years ahead and, by continuing to nurture what makes Greggs special, I believe we are extremely well-placed to realise the opportunity to become a significantly larger, multi-channel business.”
For the year ahead, the group, which has 2,300 sites across the UK, said it is looking to expand its presence in retail parks, and Central London as well as key transport hubs and is on target to expand its presence to 3,000 stores.
It comes after Greggs revealed earlier this year that it is on track for 150 net new stores this year as its value-proposition protects it from a wider consumer down-turn.
In its preliminary results update, the sausage-roll seller said its sales stood at £1.5bn, as the firm bounced back after experiencing pandemic-related disruption last Christmas.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told City A.M: “Greggs has been on more of a roll after January’s trading statement pointed to a strong end to the year in terms of sales. As the cost-of-living crisis rumbles on, consumers are showing a big appetite for Gregg’s ranges with offer the crucial ingredient in cash-strapped times – value.
“Management’s tinkering to improve the recipe for success by lengthening opening hours, increasing online orders and rewarding customer loyalty via the app have all been paying off.”