UK-based high street baker Greggs has seen its like-for-like sales grow 6.4% in the final three months of its financial year, with sales up 4.2% for the full year.
The Newcastle-based business has now posted its 13th successive quarter of like-for-like sales growth, with performance boosted by the net 66 stores that opened last year.
The group did sound a note of caution, however, saying, "Looking forward there is greater uncertainty in the trading environment with increased pressure on real income growth."
Commenting on its performance, Tom Berry, analyst at Verdict Retail, said, "Greggs’ confidence in becoming a more varied and appealing food service provider, increasing its threat on the likes of Pret A Manger and Costa, is highlighted through plans such as broadening its hot drinks offer.
"Greggs’ fourth quarter saw the opening of its state of the art distribution centre in Enfield, facilitating the closure of its Twickenham bakery in November. This, combined with its successful trial of a new shop replenishment system, will allow Greggs to improve stock allocation, improving product availability and reducing waste, while also significantly reducing supply chain costs. This will prove vital in the coming year as industry headwinds threaten short-term margins."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
