16th Jun 2020 08:36
(Alliance News) - Greggs PLC on Tuesday announced it plans to reopen around 800 stores to customers for takeaways starting Thursday, with the aim of welcoming sausage roll seekers to the remaining 1,000 sites by early July.
Shares in the FTSE 250-listed bakery chain were up 3.5% at 1,710.00 pence in London in early morning trading.
Bosses unveiled the new-look stores, with floor markings, protective clothes for staff, and screens at counters among several measures to protect against coronavirus spreading. There will be a reduced menu to ensure social distancing in kitchens and workspaces.
Greggs warned sales are likely to remain subdued as the chain copes with fewer customers allowed in stores at any one time, following a series of small-scale trials near its offices.
The company has temporarily suspended is new shop opening programme, excluding some shops where it already has legal commitments or expects strong traffic. It expects to open around 60 shops and close about 50 over the entire year.
Greggs has also reviewed is current estate and is approaching landlords with proposals in return for lower rent. All landlords have been informed of the company's intention to switch to monthly rent payments starting June and the firm made its March quarterly rent payment as usual.
Included in Thursday's opening plan are 19 shops reopening for delivery and click and collect, which will be extended to more catchments as soon as possible.
Moreover, Greggs has continued investing in its new robotic frozen logistics facility located in north east England, which it said should improve efficiency regardless of trading conditions.
Chief Executive Roger Whiteside said: "Looking forward, although great uncertainty remains, we are excited to be resuming our service for many customers this week. We are confident of our ability to adapt to market conditions in the short term while continuing to invest in the long-term growth of our business."
A trading update will be provided alongside Newcastle Upon Tyne-headquartered Greggs's interim results on July 28.
By Anna Farley; [email protected]
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