9th Oct 2013 06:35
LONDON (Alliance News) - UK bakery chain Greggs PLC Wednesday said that total sales were up 3.6% in the third quarter, boosted by net new shop openings and continued growth from franchised shops. It said that like-for-like sales were down 0.5%, though that still is an improvement from a 2.9% decline in the first half of the year.
The Newcastle-based business said that in the year to date total sales were up 3.5%, although like-for-like sales were down 2.1%.
After issuing a second profit warning in August, the bakery chain said Wednesday that its overall outlook for the year is unchanged.
Greggs said that the costs of investing in its core business are likely to constrain profit growth over the next two years.
It said that its re-shaping plan is ahead of schedule, and it now expects no increase in net shop numbers, as the number of openings match closures. Greggs said that it completed 141 shop refits so far this year, and is on track for a total of 215 shop refits by year end.
Greggs said that it has decided not to extend the trial of its "Greggs moment" coffee shop concept, and has closed three of the existing shops, while the remaining three are being incorporated into the core estate.
"We have made good progress in developing our strategic plan and our focus on the 'Bakery food-on-the-go' format. Customers are enjoying the contemporary new look, easy to navigate range and the provision of seating wherever possible," Chief Executive Officer Roger Whiteside said in a statement.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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