Bright summer for Greggs.
announcedsix monthly results to 18 October that show an improvement
in sales andgrowth.
Greggs, the UK's leading sandwich and savouries manufacturer, has announcedsix monthly results to 18 October that show an improvement in sales andgrowth.
The manufacturer, which owns 12,000 stores throughout the UK and tradesunder the Greggs and Bakers Oven brands, said that the effect of the hotsummer had reflected well on its sales and profit margins. During the lastten weeks of the period like-for-like sales grew by 2.0 per cent, showing amarked improvement.
The company said it found the news encouraging, ³especially when comparedto the exceptionally strong performance achieved in the latter part of2001'' said Derek Netherton, chairman of Greggs.
Whereas trading at the start of the financial year was described as'satisfactory', the company has made significant progress towards the end ofthe period. ''Results to date are ahead of the comparable period lastyear'', Netherton added.
For all the second half, to date, comprising the 18 weeks to 18t October,like-for-like sales across the chain were up 1.7 per cent and total sales -which included the benefits of new retail space - were also up 6.3 per cent.
Greggs has opened 14 new shops in the second half so far. Since the yearend, company has opened two stores outside of the UK, in Antwerp and Leuven,Belgium. The retail outlet expansion is part of an experimental trial of theGreggs product outside the domestic market.
A company spokesperson said:³We are recovering increased raw materialsprices and reducing costs across the group, and are now entering a period ofmuch less testing sales comparatives. Although our market place isundoubtedly becoming more competitive, we believe that the actions we aretaking will enable us to report a year of satisfactory progress thatreflects the fundamental strengths of our brands, formats andpeople.²
Mike Darrington, managing director said:³The well-established trend totakeaway food categories continued to drive sales across the group, led bysavouries and sandwiches and supported by complementary products such asdrinks. Cakes and confectionery products again remained fairly stable as aproportion of the company¹s trade, while the traditional bakery staples suchas bread and rolls continued to decline.²
Greggs and Bakers Oven own over 1200 stores throughout the UK, and employ over 16'000 staff members. The company is currently aiming at significant expansion, identified within existing trade areas and other areas of the country in which the Greggs chain is currently unrepresented. Greggs is a customer centralised business that seeks to provide products and services that deliver excellent value for money.