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Greggs

Greggs to continue shop opening strategy as it sees early success with Greggs the Bakery concept store

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By Stephen Lepitak, -

August 7, 2012 | 2 min read

High Greggs has said that it will continue with its shop opening strategy, with new format stores for different locations, also set to progress.

Revealing its interim results for the first half of 2012, Greggs chief executive Kennedy McMeikan, revealed that the company opened 39 new stores and closed six others before June, bringing the total number of stores to 1,604.

This opening programme is expected to accelerate during the second half of the year, as it aims to meet 90 new shops over the whole of the year.

This has included the four ‘Greggs moment’ coffee shops and a fifth set to open this week in Gateshead, while it also opened its new concept Shop ‘Greggs the Bakery’ in Newcastle in June, the early performance of which, McMeikan said he was ‘encouraged’ by.

The company also plans to refurbish between 100 and 120 existing shops this year, with 64 already completed.

Greggs reported an increase in sales of 4.5 per cent to £350m, although like-for-like sales have fallen by 2.3 per cent and its pre-tax profit had also fallen by £800,000 to £16.5m.

"Our total sales growth of 4.5 per cent reflects the good performance from our new shop opening programme and strong growth in wholesale volumes. The market remained challenging and was particularly impacted by the record levels of rainfall in the second quarter with UK High Street footfall down over 7 per cent. Greggs was not immune to this and our like-for-like sales fell by 3.5 per cent in the second quarter and by 2.3 per cent in the first half overall,” commented McMeikan.

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