Breakfast market fuelling Gregg's sales growth
The Newcastle-based firm, which sells sausage rolls, sandwiches, bread and cakes to over 1 million customers a day from about 1,420 shops, said sales at stores open over a year increased 0.6 per cent in the 18 weeks to May 8, which was in line with its forecast of ‘marginally positive’ like-for-like sales growth in 2010.
Total sales, said the bakery group, rose 2.6 per cent over the same period.
Gregg’s said its recent national television advertising drive focusing on staff making fresh sandwiches coupled strategy of targeting the breakfast market have proven successful in terms of fuelling sales, with sold more than two million breakfast rolls sold since their February launch, stated the group.
The firm stated that it sees further growth opportunities in the breakfast market and is set to introduce more products focused on this segment.
And chairman Derek Netherton told shareholders that the group remains on track to open 50 to 60 new shops this year, in addition to refitting 120 stores.
According to Reuters, group CEO Ken McMeikan said that the unknown at the moment for the bakery group is the impact the new government will have on both consumer confidence and spending, and he also cited concerns over potential tax increases that could be introduced by the Conservative/Liberal Democrat coalition.
McMeikan told our sister site British Baker that discussions to open a new bakery production site in Wiltshire, in the south west of England, are also underway.
“We discussed a piece of land that we think is in the right location, but which we cannot disclose yet,” he said. “We’ve narrowed it down to two or three sites, which we’re particularly keen on, but we think there’s one that stands out slightly above the other two.”
And McMeikan added that all going well, and subject to planning permission, Greggs would expect to have the new facility up and running somewhere around 2012.
