The popular Greggs bakery has announced impressive fourth quarter sales. They are expecting sales to continue to rise as they introduce green tea, vanilla latte and peppermint tea to their menu.
Since its introduction of healthier foods, Greggs has experienced like for like sales at a rate of 6.4%.
The Christmas season provided a great boost as a result of their festive selection of burritos and mince pies.
The year 2016 witnessed a 7% increase in sales, and Greggs is anticipating better results for the full year ahead.
Chief executive Rodger Whiteside praised the performance but is slightly apprehensive for 2017. He claims that rising costs may have a negative effect on sales.
“As inflation grips the market, we are seeing that there is a decline in real income growth which has placed a burden on discretionary spending. How the customers are going to respond is unpredictable,” says Mr Whiteside.
“Since we are a brand led by value, we are going to do our best not to put our prices up. However, if we are forced to it is going to have a significant effect on our profit margins.”
The range of choices available on Gregg’s menu continues to remain popular. They plan on further extending their menu to include a variety of hot drinks. These will include fair-trade green and peppermint tea, as well as vanilla latte.
In terms of expansion, Greggs is planning on opening 70 new stores in 2017. They are also going to be experimenting with a delivery service that caters to the office market in Central London.
Mr Whiteside also states: “Although the current economic climate is not at its best, I believe that Greggs will continue to make positive progress as we implement our strategic plans. This includes making investments into expansion as well our supply capability.”
Photo credit: Paul Robertson