Greggs looks ahead after poor summer

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BAKERY chain Greggs will update the City on the progress of its turnaround plan when it issues its latest trading statement on Wednesday.

The Newcastle-based business, which has already issued two profits warnings this year, is in the middle of an overhaul led by chief executive Roger Whiteside, who was drafted in to lead the company in February.

Greggs said at the time of its latest update that it was hoping for better news in the weeks ahead, after its recovery plan took a knock in the heatwave.

Like-for-like sales drifted 2.9 per cent lower in the first half-year to the end of June. However, within the period, the second quarter saw an improvement.

Hopes of further progress were melted away by the sunny weather which saw trading drop off
by 3.2 per cent in the first five weeks of the second half, to August 3.

The slump, combined with demand for less profitable cold drinks as temperatures soared, saw Greggs warn that full-year profits would be £3m lower than previously expected.

But Mr Whiteside said: “We are continuing to make improvements to the products and service in our shops and expect to return to a better trend in sales in the coming weeks.”

Greggs has 1,690 stores,
including around 120 in Yorkshire.