Bad weather hits sales at Greggs

Despite its profile being boosted by a 300,000-strong petition against plans to charge 20 per cent VAT on its hot pasties and sausage rolls, the group’s underlying sales were down 3.5 per cent in the second quarter of 2012.

The group, which has 1,600 shops in the UK, said the deterioration from a decline of 1.8 per cent earlier in the year was driven by the weather as shoppers stayed away from the high street.

Profits were down 4.6 per cent to £16.5m in the 26 weeks to June 30, despite its efforts to keep a lid on costs.

Meanwhile, the group announced plans to open 28 franchise stores in Moto service stations, creating 500 jobs, following two successful trials as part of plans to expand beyond the UK high street.