The boss of Greggs says its main priority will be to keep prices at current levels to help customers during the cost-of-living crisis.
The comments from chief executive Roisin Currie came after Greggs has reported a big rise in sales at the start of this year and said its value food was proving popular during the “challenging” economic times. In a trading update for the first 19 weeks of 2023, Greggs said its sales had risen 17.1% to £609m.
Greggs has also increased its market share, with Ms Currie saying its good value was helping it to win more customers. And despite seeing its own costs rise, she said the company was aiming to keep its prices stable in the coming months. She said: “Protecting value for us is critical. We want to remain a value leader in the market so we’re working extremely hard to mitigate the impact of inflation as it comes through.”
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Greggs said it had opened 63 new shops during the period and was being boosted by sales of chicken goujons, pizza and plant-based food such as its vegan Mexican chicken-free bake. The company now has 2,365 shops around the UK including new openings at Canary Wharf in London, and at Glasgow and Cardiff airports.
It now has four Greggs Tasty cafe’s within Primark stores and is looking to add two more in Leeds and Liverpool, as well as looking to have more outlets in Tesco and Asda supermarkets.
The chain has been trialling made-to-order sandwiches at some of its stores in Newcastle through its click-and-collect service, and will now be expanding that trial to around 40 shops in the North East. It is also set to expand its vegan food range.
In a statement to the Stock Exchange, the company said: “We have made a good start to the year with sales in line with plans and continued progress on our strategic initiatives. Looking ahead, whilst we expect the macro backdrop to continue to be challenging, we are confident in making further progress.
“Although we expect to see ongoing material cost inflation, we have good forward cover on key commodities. Consumer disposable incomes are likely to stay under pressure, but we remain confident that our outstanding value proposition continues to be compelling. Whilst uncertainties continue, the board’s expectations for the full year outcome are unchanged.”
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