Greggs on track to hit target of 150 new stores this year

Greggs healthy shop, New Cross Hospital, Wolverhampton

British bakery chain Greggs has announced that it is on target to achieve its expansion plans to open a total of 150 new stores this year, with 70 of those having already been launched as the company continues to see growth in sales.

The 70 new shops opened so far this year include 26 franchised units, with the chain also closing 12 stores during this period, giving a total of 2,239 shops (of which 401 are franchised) trading at July 2 this year.

Other notable shop openings in the first half of 2022 include three ‘drive-thru’ sites, of which the company has a growing pipeline, and its in-store café concept in Primark Birmingham.

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The company has opened new stores in London’s Leicester Square and Liverpool Street Station in recent weeks, adding to its portfolio in the UK’s capital city.

The chain’s shop refurbishment standard, which has already been deployed for all new shops and relocations, is expected to be applied to another 100 shops this year, progressing to 250 annually in the medium term.

Greggs also opened its 400th franchised shop in Selby earlier this year in partnership with its newest franchise partner, Rontec, which operates in the UK forecourt market.

Sales figures for the first half of the year were positive, with total sales for the 26 weeks to 2 July 2 equalling £694.5 million, an increase of 27.1 per cent compared to the first half of 2021, in which total sales of £546.2 million were recorded.

Compared to pre-pandemic levels, like-for-like sales in company-managed shops in the first half of 2022 were 12.3 per cent higher than the equivalent period of 2019, despite footfall remaining below levels seen in that year.

Roisin Currie, Chief Executive at Greggs, said: “Greggs delivered an encouraging performance in the first half of the year with sales ahead of 2019 levels. These results demonstrate the continued strength of the Greggs brand and demand for our great tasting, quality and value for money offering.

“During the period we continued to make good progress with our strategic priorities, including expanding our shop estate and making Greggs more accessible to customers through extended trading hours and digital channels.

“In a market where consumer incomes are under pressure Greggs offers exceptional value for customers looking for food and drink on-the-go. We are well positioned to navigate the widely publicised challenges affecting the economy and continue to have a number of exciting growth opportunities ahead, with a clear strategy for expansion.”

Other changes made in the first half of this year included the extension of evening hours, new click and collect services via the Greggs App and a product customisation offering, as well as new product and menu development focusing on healthier options for customers.

In the first half of 2022, the chain launched two salad meal boxes – Smoky Cajun Rice with BBQ Chicken and Sweetcorn Fritters and Sweet Potato Bhaji and Rice, which is a vegan option, as well as beginning to offer fruit pots for just 75 pence as an add-on to its meal deals.

To meet demand for hot food options, the company continued to roll out hot food cabinets, particularly to those shops that are targeting the evening trade, with 867 company-managed shops now containing hot food cabinets and plans for a further 400 to be introduced in the pipeline for the remainder of the year.

The chain’s first ‘Eco-Shop’ was also launched this year to test solutions to minimise the environmental impact of retail operations as part of the ‘Greggs Pledge’, which includes science-based targets for emissions submitted for verification.

Greggs reveals size of franchise network after landmark opening

Tags : bakeryGreggs
Joshua Walton

The author Joshua Walton

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