...By Judah Olanisebee for TDPel Media.
Greggs Reports Strong Sales Growth and Expands Menu Options
Bakery chain Greggs has experienced a significant increase in sales, with its affordable meals remaining appealing to consumers facing financial constraints.
The company’s expansion into hot food and vegan options, along with its upcoming flatbread range, has contributed to its success.
Sales Surge Driven by Cheap and Versatile Options:
Greggs has witnessed a sales growth of 17% compared to the same period in the previous year.
The impact of the Omicron variant in early 2022 played a role in this increase.
Consumers have shown a strong preference for hot food items like chicken goujons and wedges, as well as pizza, as Greggs further ventures into the evening market.
Tapping into the Vegan Market:
Recognizing the growing demand for vegan products, Greggs has gradually introduced a range of vegan options, including the popular vegan sausage roll and more recently, vegan chicken-free bakes.
This strategic move aims to cater to the expanding market of plant-based consumers.
New Flatbread Range and Increased Choice:
Greggs is set to launch a new flatbread range, starting with the introduction of a Mexican chicken flatbread in stores.
Chief Executive Roisin Currie highlights the importance of offering choice to customers, allowing them to visit more frequently and explore a variety of options alongside their favorites.
Anticipated Normalization of Sales Growth:
Greggs expects sales growth to stabilize throughout the remainder of the year as inflation begins to ease.
However, cost inflation is projected to reach approximately 9% to 10% due to factors such as increased staff wages and higher energy costs.
Store Expansion and Targeting Commuter Areas:
Greggs has continued to expand its store network, opening 63 new shops and closing 25 franchises.
The company aims to exceed 3,000 stores across the UK, with a focus on busy commuter areas.
Recent shop openings in London’s Canary Wharf station, Cardiff, and Glasgow airports have been regarded as significant developments.
Challenging Macroeconomic Climate and Value Proposition:
While acknowledging the challenging macroeconomic environment characterized by cost inflation and pressure on household incomes, Greggs remains confident in its outstanding value proposition.
The company has no immediate plans to increase its product prices, with its popular sausage roll currently priced at £1.20 on average.