Greggs benefits from price hike
baker and retailer Greggs to post a "pleasing" increase in
second half sales.
In the 29 weeks to 1 January, Greggs posted a 6 per cent increase in like-for-like sales, holding up well over the five-week Christmas period when many other UK retailers found themselves suffering.
"Performance in the final 11 weeks following the issue of our October trading update was ahead of our budget, showing a like-for-like increase of 5.7 per cent," said managing director Sir Michael Darrington in a trading statement.
"Underlying like-for-like sales growth during the five week period to 8 January 2005, covering Christmas trading, was in line with the overall second half trend after adjusting for the different holiday closure patterns in the two years."
The increase in sales prices, a strategy designed to offset rising raw material costs over the last year, helped give an additional boost to sales. In last year's second half, sales were 2.2 per cent higher (albeit over 28 rather than 29 weeks) as they recovered from a poor first half impacted by exceptionally hot summer weather in 2003.
Greggs, which will issue full trading figures for 2004 on 14 March, continued to expand during the year, with a net addition of 32 stores to its portfolio, which now stands at 1,263 shops under the Greggs and Bakers Oven banners.
