Greggs recovering majority of Brexit-induced decline: XTB analyst

By Douglas Yu contact

- Last updated on GMT

XTB market analyst said Greggs remains on the right track and on course for a good year.
XTB market analyst said Greggs remains on the right track and on course for a good year.

Related tags: Retailing

Major UK bakery food-on-the-go retailer Greggs has reported sales up 5.6% for the 13 weeks to October 1, and like-for-like sales up 3.4%.

“Greggs continued to trade in line with our expectations in the third quarter,”​ the business said.

“The popularity of our summer menu, including an extended range of Balanced Choice salads and yogurts supported sales growth in the period. We also saw continued strong growth at breakfast time, helped by our strong coffee offer and value sales.”

The new autumn and winter menu is now in use as Greggs seeks to expand and differentiate its product offering away from just the traditional items. It includes new snacks that are low calorie and gluten-free.

XTB​ market analyst David Cheetham said “Greggs remains on the right track and on course for a good year.”

“The stock has performed well in the last three months with the summer menu and extended range helping the baker recover the majority of the Brexit-induced decline,”​ he added.

Opening new retail outlets and distribution center

In the year-to-date, Greggs has completed 145 shop refurbishments and is on track to refurbish around 200 shops this year, according to the company. It has also opened 103 new shops, including 41 franchised units.

Greggs is expected to open 140 to 150 shops and close around 70 to 88, “a net increase of around 70 [shops]".

In addition, the company’s work to facilitate its new distribution center in Enfield has also finished, and the site will be brought into operations in the coming weeks.

“As a result, we will complete the previously-announced closure of our Twickenham bakery in November,”​ Greggs added.

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