Greggs holding firm on pricing as sales jump nearly a fifth in past year
Sales grew by 17 per cent over the start of the year compared with 2022, partly because the first few months of the previous year were impacted by the Omicron variant of Covid, the bakery and snacks chain revealed. Hot food such as chicken goujons and wedges are proving popular, alongside strong demand for pizza as the chain moves further into the evening market. Vegan products have been rolled out steadily over the years in a bid to tap into the growing market, including its vegan sausage roll.
Chief executive Roisin Currie said: “It’s all about offering that choice, so people can come in more frequently. They can come in time and time again and try lots of different things, as well as the favourites that they love.”
Sales growth is likely to “normalise” throughout the rest of the year, the company said, as inflation starts to ease. But it is still expecting cost inflation to reach around 9 per cent to 10 per cent this year, driven by staff pay pressures and higher energy costs.
There are no current plans to raise the prices of its products, Currie added. The national average price of its popular sausage roll is currently £1.20, having cost £1 at the start of 2022.
Adam Vettese, an analyst at social investing network eToro, said: “Greggs has been a phenomenal success story for investors over the past year. Its focus on value, quality and convenience makes it well-suited to the current economic environment, where households are trying to make their money go further. The biggest threat currently to Greggs is higher input costs.”
Greggs has steamed ahead with growing its store estate, opening 63 shops over the period and closing 25 franchises. It had more than 2,360 shops by mid-May, and previously hinted it wants to reach more than 3,000 across the UK over time. It is increasingly targeting busy commuter areas, with new shops opening in London’s Canary Wharf station, and Cardiff and Glasgow airports.
Want to join the conversation? Please or to comment on this article.