UK bakery retailer Greggs has posted a 7.4% increase in sales in its 2017 financial year, with like-for-like store sales up 3.7%.
The pie and pastry maker says that this performance was boosted by its expansion throughout the year, opening 131 new stores, bringing its total portfolio to 1,854 shops across the UK.
In 2017, the group also converted 142 stores to its new 'bakery food-on-the-go' format, and expects to refurbish another 100 stores this year.
"We finished 2017 well, delivering our seventeenth consecutive quarter of like-for-like sales growth, and anticipate that we will report full year results for 2017 in line with our previous expectations," said Roger Whiteside, chief executive of Greggs.
Darren Shirley, consumer equity researcher at Shore Capital, said that the investment group is leaving its FY2017 forecasts for Greggs unchanged after this update.
"Greggs has issued what we see as a solid trading update for Q4 2017, with trading momentum slowing to 3.0% LFL, against demanding comparatives and with tougher December trading conditions," he added.
2018 Outlook
Greggs says that in 2018 it plans to increase the rate of store openings, with the number of new additions expected to be in the 110-130 range.
The bakery giant is also planning a record year for investment in its supply chain, with the aim of increasing capacity to further grow the business.
The group is anticipating industry-wide cost pressures, but expects these to be at a lower level than those experienced in 2017.
"In the year ahead, we will continue to focus on delivering the outstanding value and taste that Greggs is famous for," added Whiteside.
"2018 will be a record year for investment in our supply chain and we intend to increase the rate of new shop openings as we continue to grow Greggs as a leading food-on-the-go brand."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
