On a roll: Greggs to open 160 more shops after rise in sales after festive period - will a store be opening near you?
10 January 2024, 12:52 | Updated: 10 January 2024, 14:59
Known for its beloved sausage rolls, steak bakes, and Yum Yum’s, Britain's biggest bakery chain is set to open up to 160 more shops after a major jump in sales during the festive period - and eight locations have already been revealed.
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From the final quarter to December 30, Greggs recorded a 9.4 per cent jump in like for sales.
This increase is down to a strong demand for seasonally Christmas products, such as the festive bake and chocolate orange muffin.
It added that there is also a strong demand for vegan options.
Now, Greggs have confirmed where eight of their 160 stores will be located.
New Greggs stores confirmed:
- Within Tesco, Bar Hill in Cambridge
- Chester Road, Mold
- Within Tesco, Ealing in London
- Church Walk Shopping Centre, Walker
- General Rees Square, Cwmbran
- Northenden Road, Sale
- U2 Portland Walk, Barrow-in-Furness
- MFG service station, Hyde Road, Mottram
For 2023, total sales rose to £1.8 billion, 19.6 per cent, with the "record" number of store openings contributing to the figures; this is a net increase of 145 from last year
The chain opened 220 shops - a record number. Greggs closed 33 of its stores and relocated 42, leaving it with 145 new sites on a net basis, taking its total estate to 2,473.
The chain said it had recorded continual growth in transitions and a reduced contribution from price inflation throughout the year.
Greggs said that the "pipeline of new shop opportunities remains strong", and expects to open between 140 to 160 net new shops in 2024.
In addition, the bakery chain also plans to continue rolling out its evening opening hours on a targeted basis across stores.
Currently, 1,200 of their shops have extended hours available, which sent shares in Greggs by up to 200p, 8 per cent, to £26.66.
Roisin Currie, the chief executive, said: "We enter 2024 with plans to continue to invest in our shops and expand supply chain capacity to deliver the growth strategy, supported by our strong balance sheet.
"Our value-for-money offer and the quality of our freshly prepared food and drink continue to evolve and position us well for further progress in the year ahead."
Greggs said the boost in sales at the end of 2023 "reflected the favourable Christmas trading pattern and less disruption than we saw in the same period of 2022."
The news of more shops opening comes as the bakery chain says they do not plan to hike prices over 2024, but that it is unlikely to be able to offer price cuts as rising wages keep costs under pressure.
Ms Currie told the PA news agency she has "no plans currently" to increase prices across its ranges as it expects a more stable cost base over the year ahead.
However, she said it would be "a long time before we see deflation" that would allow the group to start reducing prices, with retailers among those facing higher wage bills due to increases in the national living wage.
But she said rising wages was also "good news as it puts more money into consumers' pockets".
