Greggs, the bakery chain, has reported a narrowing of its like-for-like sales decline in the 13 weeks to 28 September and said the “re-shaping” of its estate is ahead of plan so it expects no increase in net shop numbers.
Like-for-like in the period fell 0.5% against a decline of 2.9% in H1. “This was in line with our expectation that an improving sales pattern would return in August and September after the impact of the heatwave in July,” the firm said.
Overall sales grew 3.6%. Year-to-date sales are up 3.5%, with year-to-date like-for-likes down 2.1%.
The company also said that following its decision not to extend the trial of its Greggs moment coffee shop concept, it has now confirmed plans for the six existing shops. “Three have been closed and the remaining three are being incorporated into the core estate.”
Greggs said its estate improvement programme is on track, with 141 refits completed in the year to date and its on track for a record 215 refits in the full year, more than half of which will be in its new ‘Bakery food-on-the-go’ format.
The company also stated a number of key targets and milestones that it wants to track over the next three years.
This includes restoring like-for-like sales growth.
In addition, Greggs said: “We will also monitor closely a number of strategic deliverables: Returns on our increased investment in circa 200 shop refits per year over the medium term; the rate at which we achieve the planned re-shaping of our estate through shop relocations and closures; greater efficiency from our existing supply chain through further development of centres of excellence; and achievement of the planned benefits from our investment in a modernised process and systems platform.”
Chief executive Roger Whiteside said: “We are encouraged by the recent improvement in like-for-like performance, although with consumer disposable incomes still under pressure we remain cautious. Cost inflation is in line with our expectations and the group’s cash position remains strong. Our overall outlook for the full year is unchanged.
“We have made good progress in developing our strategic plan and our focus on the ‘Bakery food-on-the-go’ format. Customers are enjoying the contemporary new look, easy to navigate range and the provision of seating wherever possible.”
