By Greg Wright

Published 1st Aug 2023, 14:22 BST

Bosses at the Newcastle-based business also said it benefited from its “value position” over the first half of the year amid continued demand from customers with squeezed household finances.

The high street bakery chain revealed that sales jumped 21.5 per cent to £844m for the six months to July 1.

This included a boost from higher demand from customers, price increases and new store openings.

Greggs has said it will target more shops in supermarkets and airports as the company’s continued expansion helped to drive sales higher. (Photo by Andrew Matthews/PA Wire)

Greggs said it increased its store estate by 50 to 2,378 shops across the UK, after opening 94 sites but shutting 44 over the half year.

The company has outlined ambitions to grow its estate to “significantly more than 3,000 shops” over the long term.

It plans to accelerate its growth plans over the rest of the year and anticipates it will have had 150 net openings across the whole of 2023.

Chief executive Roisin Currie said Greggs’ growth plans are “on track” and will target more locations where it feels the brand is under-represented.

“We have targeted travel locations and opened in airports like Glasgow, Cardiff and Gatwick,” she told the PA news agency.

“Customers will also see us continue to open more shops within supermarkets and have already opened a number within Tesco and Sainsbury’s shops.

“We have a really strong pipeline of new sites and will target more of those areas.”

On Tuesday, Greggs also said its sales over the latest half-year were boosted by increased evening trade, as it saw customers buy more products such as pizza, chicken goujons and flatbreads.

It came as the company reported a pre-tax profit of £80m for the period, increasing from £55.8m a year earlier.

Ms Currie added: “Greggs strong performance continued in the first half of 2023 as we deliver on our strategic growth plan.

“With consumers remaining under pressure, we continue to offer exceptional value, which is reflected in our performance and growing market share.”

Mamta Valechha, equity research analyst at Quilter Cheviot, said: “Greggs reported a solid set of results this morning which showed strong momentum, easing costs, and reiterated its full year guidance.

“Positively, key growth drivers also remain intact. Evening trade has seen increased traction with post-4pm sales growing the fastest, now making up 8 per cent of total transactions. Transactions made on the app have also accelerated to almost 11 per cent, which should drive higher customer purchase frequencies through the new Greggs loyalty scheme.”

Greggs to target more supermarket and airport openings