Breakfast sales buoy Greggs sales in quarter
October 7, 2010
by Eric Schroeder
LONDON — Breakfast sales, led by the company’s best-selling bacon roll sandwich, contributed to 2.6% year-over-year sales growth at Greggs P.L.C. in the nine months ended Oct. 2, including like-for-like sales growth of 0.5%. For the third quarter ended Oct. 2, total sales rose 2.1%, including a like-for-like sales increase of 0.2%.
“As we expected, the trading environment has been tough and is likely to remain so, with consumer spending continuing to be constrained and inflationary pressures building for next year,” said Ken McMeikan, chief executive officer. “We anticipate that like-for-like sales in the final quarter will be broadly flat and therefore marginally positive over the year as a whole. We continue to keep a very tight focus on costs and our financial position remains strong.”
With strong breakfast sales, Greggs said it plans to extend its breakfast range with the roll-out of croissants, pain au chocolat and porridge.
The company also remains on track with several bakery projects.
“Construction of our replacement bakery in Newcastle upon Tyne is progressing well, and is scheduled to begin production in mid-2011,” the company said. “We have received planning permission for our new cake and confectionery bakery in Penrith and commence building later this month ready to open in summer 2011. We have also submitted a planning application for a new bakery in Wiltshire to enable us to unlock the significant growth opportunities we have identified in the South and South West.”