UK bakery chain Greggs will invest GBP50-60m (US$82-98.5m) a year to increase the rate at which it opens new stores, the company revealed today (20 October).
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In its interim management statement, Greggs said that it would open 50-60 stores this year, increasing to “at least” 70 a year by 2011. The company said that this is “more than double” its historic rate of store openings.
Greggs said that in the 42 weeks ended 17 October total sales increased by 3.8%. Year-to-date same store sales rose by 1%.
In the third quarter, sales gains were dented by a downward trend in selling prices. Greggs said selling-price inflation was running at its lowest level for five years.
Total sales in the three months increased by 2.5% and like-for-like sales were up by 0.2%.
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By GlobalDataHowever, Greggs emphasised that underlying volumes remained “in line” with those seen in the first half.
“I am pleased with our sales performance against the background of continued tough high street trading conditions. We are committed to helping our customers make their budgets stretch as far as possible,” said chief executive Ken McMeikan.
