Greggs has released its latest trading results, with a LFL decline of 2.9% for the five weeks ending 05 January 2013 and a decline of 2.7% for the 52 weeks ending 29 December 2012.
New stores drive total sales growth
Despite falling LFLs, total sales at Greggs were up 4.3% during the five weeks to 05 January 2013 and 4.8% for the 52 weeks to 29 December 2012. This was due to a record store opening programme that saw over 100 new outlets open, taking the total beyond 1,600. Many of these stores were opened in locations away from the high street.
New channels performing well
The emergence of wholesale and franchise operations has driven much needed volume growth for Greggs and contributed 3% to total growth in the five week Christmas period. Its partnerships with Iceland and Moto Hospitality have proved successful and further expansion is planned for 2013.
Core estate is top priority
While total sales in the period have grown, returning the core estate to growth will be a priority for Greggs in 2013. It hopes to achieve this through the extension of its refit programme and by easing back on its store opening programme. Ken McMeikan, chief executive at Greggs, said "We were encouraged by the performance of our refit programme in 2012 including the new 'Greggs the Bakery format'. In the year ahead we will substantially increase investment in our core business by refitting 200-300 shops".