6th Oct 2015 07:07
LONDON (Alliance News) - Greggs PLC Tuesday reported growth in sales in the third quarter of its financial year and said it expects to report full-year growth slightly ahead of previous expectations amid favourable market conditions.
The bakery and food-to-go retailer also said the new UK National Living Wage will raise its costs, but noted that it already pays staff above the current minimum.
Greggs said that total sales in the 13 weeks to October 3 rose 5% on the same period the year before, while own-shop like-for-like sales grew 4.9%, slightly ahead of its expectations. In the year to date, total sales grew 5.1% and own-shop like-for-likes rose 5.6%.
Greggs said that product initiatives combined with value deals continued to drive increased customer visits and transaction values, with the extension of its Balanced Choice range proving particularly popular.
"Market conditions remain favourable with low cost pressures and a stronger consumer environment. We expect this to continue through to the end of the year after which increases to wage rates will drive greater inflationary pressure. Our standard rate for hourly-paid shop staff is already above the National Minimum Wage, and we will maintain a competitive position in the market going forward," Greggs said in a statement.
"Our sales performance is slightly ahead of our previous plan and, whilst comparatives will stiffen further in the fourth quarter, sales will benefit from additional shop openings. As a result we expect to deliver good growth for the year, slightly ahead of our previous expectations, and further progress against our strategic plan," the company added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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