Greggs set to roll out more stores despite supply fears

GREGGS outlined plans yesterday to double its revenues as it raised profit forecasts despite the impact of inflation and disruption to supplies.

The baker – known for its sausage rolls, steak bakes and vegan treats – is targeting sales of £2.4bn in 2026.

That is based on it growing in the UK to at least 3,000 shops and expanding abroad.

The firm will open 150 shops each year from 2022, capitalising on cheaper property prices caused by lockdowns. Greggs also plans to keep its shops open later and increase sales through its new delivery business. Deliveries are expected to bring in £170m this year out of a total £1.2bn revenue.

Bouncing back from the pandemic, it posted a 3.5pc jump in sales compared with 2019. Greggs fared well in August thanks to a ‘staycation’ boom and continued growing in September. Full-year profits are on course to be ‘ahead of our previous expectations’. Analysts raised their forecasts from around £135m to more than £143m. Greggs attributed part of its growth to the popularity of its vegan range, which was widened following the successful introduction of its vegan sausage roll.

But it said it ‘has not been immune’ to staff shortages and supply chain pressures having experienced disruption in hiring and sourcing ingredients.

Chief executive Roger Whiteside, however, said: ‘The sausage roll is safe, that’s one thing we haven’t gone short of.’

The firm said buying ingredients and other supplies in advance offered short-term protection but warned costs would increase by the end of the year.

AJ Bell investment director Russ Mould said: ‘It’s when times are tough that management really earn their corn and despite seeing shortages on a daily basis and facing inflationary and staffing pressures, it is impressive that the company still felt able to raise profit forecasts for 2021.’