Double-digit Christmas surge prompts Greggs to confirm plans for more stores

GREGGS yesterday vowed to press ahead with its growth plans, creating hundreds of jobs, after the bakery chain posted a double-digit rise in festive sales.

The company, which last year opened a record 98 stores and completed 170 refurbishments, forecast “marginally positive” like-for-like sales growth in 2012.

It said it would benefit from the opening of a further 90 shops, creating some 800 jobs – a similar number to 2011. The firm’s headcount rose above 20,000 for the first time last year.

Ken McMeikan, the group’s Scots-born chief executive, gave a cautious outlook saying the “tough trading environment” was likely to continue throughout 2012.

“We will therefore continue to focus on maximising our customer appeal through product innovation and strong promotional activity, building on Greggs’ already excellent reputation for value,” he added.

Festive shoppers refuelling on mince pies, sausage rolls and coffee helped the chain toast an “excellent” 10.8 per cent jump in sales over Christmas and New Year. Excluding the impact of store openings, sales were up by 5.1 per cent in the five weeks to 7 January.

It sold a record seven-and-a-half million mince pies, while sales of its “festive bakes” lifted 27 per cent year-on-year and coffee sales increased 21 per cent.

With almost 1,600 stores currently, including about 200 north of the Border, Greggs has more outlets than McDonald’s in the UK and sees scope for in excess of 2,000.

Scott Reid