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Greggs rolls out expansion plan
BAKERY chain Greggs today announced plans for further expansion and said it would look to serve customers "at work and as they travel".
The business, which has 1,400 outlets in the UK, also said it planned to bring its Bakers Oven business under the Greggs banner and offer customers outlets with both cafe and bakery facilities.
The retailer said it could see "considerable potential" for growth across the UK, particularly in the south of England and North West.
Newcastle-based Greggs said it planned new outlets in locations away from its traditional high street bases. It already has a store at Newcastle Airport but could now move into areas like industrial estates, housing estates and bus stations.
The company said it was looking to serve customers "at work and as they travel".
The plans emerged as Greggs posted decent trading figures for the 25 weeks to December 6, with like-for-like sales growth of 3.8 per cent matching the rate reported in early October.
Chief executive Ken McMeikan said the priority would be to "simplify the business and strengthen its capabilities" next year so it was ready for "accelerated growth and expansion" in 2010.
Mr McMeikan said the business, which serves one million customers every day and sells three million sausage rolls a week, was in a good position to "weather the current downturn" and "exploit opportunities for future growth".
He said the move to bring Bakers Oven under the Greggs name would allow further expansion as Greggs shops require a central bakery and Bakers Oven outlets have these on site.
He said the move would also allow Bakers Oven outlets to take advantage of Greggs national advertising campaigns.
Mr McMeikan, who joined the company in June, said the company's product ranges would be increased to reflect customer requests for healthier options.
Alongside the traditional sausage rolls will be more sandwiches without mayonnaise and an increase in vegetarian options.
Mr McMeikan said products would vary depending on the location of the store, with around 80 per cent of items available everywhere and 20 per cent being "local favourites".
The announcement comes two months after Greggs cut 3 million from full-year profit forecasts. Analysts had been expecting a pre-tax profits haul of around 48 million for the year to the end of December.
One loser from the company's restructuring drive will be its small Belgian operation. The 10 outlets, which employ 49 people, are set to close.
Mr McMeikan said: "It has been a loss-making business for the five years we have been there and it's not a core part of our customer strategy."
He said current trading was "good" but added customers would "not be immune" to the effects of the economic downturn.
"The world has changed since the summer. In the current retail climate I think it is a good performance," he said of today's trading figures.
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Saturday 11 February 2012
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