UK high street bakery chain Greggs has reported a 7.0% increase in sales to £894.2 million in full year 2016, with like-for-like sales at company-managed stores up 4.2%.
Operating profit excluding property profits and exceptional items was up 8.6% to £78.1 million.
The group said that 'growing strength in the food-to-go market' has helped boost its performance, along with further improvements to its product range. Its 'Balanced Choice' range of healthier options now accounts for more than 10% of sales.
The year saw 66 net new openings and 208 shops refurbished, which means that 92% of the group's estate is now tailored around the 'food-to-go' format.
“In 2016 we delivered another strong performance as we continued on our journey to transform Greggs from a traditional bakery business into a modern, attractive food-on-the-go retailer," said Roger Whiteside, Greggs chief executive.
"Our product offer is evolving to meet the changing needs of our customers and our shop estate and service levels have benefited from significant investment."
Commenting on its performance, Tom Berry, Analyst at GlobalData, said, "The opening of its state-of-the-art distribution centre in Enfield and shop replenishment system will allow Greggs to significantly reduce supply chain costs, while improving product availability and reducing waste. This will be vital as Greggs develops its delivery service, which is currently available in London, Manchester and Newcastle."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
