Greggs, the high street bakery chain led by Roger Whiteside, has reported a 3.7% rise in like for like sales for the 17 weeks to 26 April following a “weak” performance in 2013.
The company, which is undertaking a major refurbishment programme of 200 shops this year, said the same period in 2013 saw a decline of 4.4%.
“Our year-on-year performance is in part benefiting from comparison with a period of weak trading in 2013 when like-for-like sales for the first 17 weeks declined by 4.4%, impacted by snow in January and March 2013,” the company said.
Greggs has converted 66 of its shops to the ‘bakery food-on-the-go’ concept in the 17 weeks to April 26, as part of its plan to refurbish 200 shops to the new format in 2014.
The company has opened 20 new shops, including 11 franchised units in transport locations, and closed 28, leaving a total of 1,663 currently trading. These closures have realised property profits of £1.4m for the company.
“Market conditions remain highly competitive but we are encouraged by the performance in the year to date. We have delivered continuing improvement in like-for-like sales, albeit against the weak comparatives of last year, and strong cost control. We have also benefited from property disposal profits and lower than expected input cost inflation. As a result, we expect to deliver a good first half outcome.
“The second half is likely to be more challenging as we come up against relatively stronger sales comparables and likely cost inflation. Overall we expect to deliver satisfactory financial results for the year and good further strategic progress,” Greggs said in a statement.
