The boss of the bakery chain, Greggs, said that Britain was still a long way from reaching the “peak” of its sales.
Investors formed a line for the shares of this high-street fast-food chain known for its steak bakes and sausage rolls. It posted a 9.4% increase in sales on a like-for-like basis in the last quarter ending December 30, and its stock immediately soared to the top spot of the FTSE 250 with a gain of 128p or 5.2 percent to £26.02.
Roisin Currie (52), its 52-year-old chief executive, has praised the strong demand for seasonal goods — it sold over 8.8 million mincepies and 4.3 millions “festive bakeds”. Less transport strikes and better conditions than during the same period of 2022 also contributed to growth.
The total sales rose 19.6 percent to £1.8 billion. This was boosted by the “record” opening of stores, an increase of 145 net last year, as Greggs focused on retail parks and travel hubs.
Greggs, a retailer that is often regarded as a barometer for the retail sector in general, has said that “the pipeline of new shop openings remains strong”. It expects to open between 140-160 net new stores this year. It had previously predicted that the number would be around 150.
The retailer plans to roll out extended hours in its stores on a targeted level. Currently, there are about 1,200 outlets that offer evening opening.
Currie stated that the UK would still be a “long way” away from peak Greggs. She said there was “significantly more” than 3,000 stores available.
Greggs was founded by John Gregg in Tyneside as a baker in 1939. Today, it has 2473 shops, of which 1,970 are managed by the company, and more than 503 are franchised. The company also operates several Tasty by Greggs cafés within Primark stores, and launched a clothing line.
The cost of living crisis has helped it as consumers are looking for cheaper options. Currie was asked if she was concerned about customers trading up in the future to rivals. She said that the customer has “become savvier over the past couple of years, and thinks more about where and how they spend their money and where there is great value.” This is a behavior that will be ingrained in consumers.”
She said she did not “expect further price increases” because cost inflation in areas like food and energy had started to ease. She said that it would take “a long time” before the group could start to reduce prices. Retailers are among those who will be facing higher wages due to the increase in the national minimum wage. She said that rising wages were also “good news” as they put more money in the pockets of consumers.