Shares up as Greggs rolls out plan for at least 100 more stores
HIGH street chain Greggs, which has 13 stores in Northern Ireland, has said it plans to ramp up shop openings over the year ahead after a solid performance in 2017 despite seeing sales growth slow over the Christmas season.
The group said like-for-like sales rose 3.7% last year, but growth slowed to 3% in the final three months as it came up against tough comparisons from a strong performance the previous Christmas. It marked a slowdown from growth of 5% in the third quarter.
Shares lifted more than 2% as it said it finished the year “well”.
Greggs boss Roger Whiteside said 2018 would see record investment in the group’s supply chain as it aims to open between 110 and 130 shops on a net basis over the year.
This comes after it grew its estate to 1,854 in 2017, having opened 131 shops and closed 41.
Mr Whiteside said: “We finished 2017 well, delivering our 17th consecutive quarter of likefor-like sales growth, and anticipate that we will report full-year results for 2017 in line with our previous expectations.
“And 2018 will be a record year for investment in our supply chain. We intend to increase the rate of new shop openings as we continue to grow Greggs as a leading food-on-the-go brand.”
But the group cautioned that cost pressures will continue over 2018, albeit at a slower rate than in 2017, when retailers were clobbered by inflation from the weak pound, soaring business rates and higher wage costs.
The firm said it made progress on its supply chain investment programme at the end of the year, testing new systems and commissioning a new national manufacturing facility for the production of small cakes and muffins at its Leeds site.
It also aims to continue with refurbishments, revamping around 100 shops over 2018.
Greggs said its classic favourites performed well in the final three months of 2017, while it also added Christmas specials such as its festive bake.