Christmas slowdown, but Greggs plans more stores

Chain has plans to open between 110 and 130 shops in 2018

High street bakery chain Greggs plans to ramp up shop openings over the year ahead after a solid performance in 2017.

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.

Greggs boss Roger Whiteside said 2018 would see record investment in the group’s supply chain, and 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 like-for-like sales growth, and anticipate that we will report full-year results for 2017 in line with our previous expectations.

“2018 will be a record year for investment in our supply chain and 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 production of small cakes and muffins at its Leeds site.

Meanwhile a record 220 million mince pies sold last year helped Mr Kipling cakes firm Premier Foods to a hike in festive sales.

Premier Foods — which is also behind Ambrosia custard and Bisto gravy — reported a 4% rise in sales over its third quarter to December 30.

Picture: Dougie Nicholson. Greggs in Coldside, Dundee.