Sales rise at Greggs as customers turned to value meals amid cost-of-living squeeze
Bakery chain Greggs said its sales jumped in the first half of the year as customers turned to value meals amid the cost-of-living squeeze.
Its sales leapt by 27.1% in the 26 weeks to July 2 to total £694.5 million, compared with £546.2 million a year earlier.
But half-year profits remained largely flat year-on-year at £55.8 million compared with £55.5 million last year, due to the re-introduction of business rates, an increase in VAT and higher levels of cost inflation.
With soaring inflation putting a strain on people’s incomes, consumers are more likely to turn to lower-cost food and drink while on the go, Greggs said.
The chain – which has more than 2,200 shops in the UK – said it plans to extend its opening hours, shake up its menu options and offer more delivery services in order to gain more evening sales.
Greggs chief executive Roisin Currie said: “In a market where consumer incomes are under pressure, Greggs offers exceptional value for customers looking for food and drink on the go.
“We are well-positioned to navigate the widely publicised challenges affecting the economy and continue to have a number of exciting growth opportunities ahead, with a clear strategy for expansion.”