Greggs has successfully diverted itself away from the traditional high street and into more travel and transport locations in recent years – and now it’s testing a new channel by agreeing an in-store partnership with Asda.
The deal sees Asda become the first supermarket to open Greggs concessions, bringing the brand’s range in-store for customers to shop.
Five stores are set to receive the new concessions initially, with the first opening next month.
Customers at Asda’s Boldon, Corby, Huyton, Wigan and Eastlands stores will have the chance to buy the same selection of products found in standalone Greggs shops, including sausage rolls, hot food and beverages.
Raymond Reynolds, business development and property director at Greggs, said: “We know that high quality food-on-the-go and convenience go hand in hand, and this trial gives us the opportunity to bring our range of products to more customers in new locations.”
Greggs revealed last year that 38% of its shops now serve catchments wholly outside of traditional shopping locations, but it anticipates this proportion will continue to grow to more than 50% in the longer term.
Opening new outlets has been key to the company achieving more than £1 billion in sales for the first time last year.
Asda is keen to link up with companies that it believes can complement its existing range. It already works with KellyDeli brand Sushi Daily and Just Eat to bring a range of food-to-go options to shoppers.
It is aiming to extend such partnerships to around 150 Asda stores.
Preyash Thakrar, chief strategy officer at Asda, said the supermarket chain was continuing a “test and learn” approach to industry alliances.
“We are constantly looking for new ways to increase customer choice, and by partnering with brands that fit with our core values of great quality and great value – like Greggs – we’re excited to be able to give our customers access to something new in store that we know they will love.
“Greggs is a much-loved brand, well-known for offering great tasting, freshly prepared food at great value, and with their focus on launching innovative new products, as well as supporting communities where it counts, we think these concessions will be very well-received by our customers.”