Greggs to speak in confidence to 160 new shops in 2024 as gross sales see festive increase
- Group had 2,473 shops at finish of 2023 after opening file 220 and shutting 75
- Full-year gross sales jumped by 19.6% to £1.8bn after Christmas income increase
Greggs is about to speak in confidence to 160 new websites this yr after a file variety of openings in 2023, which helped revenues soar by nearly a fifth to £1.8billion.
The group, which opened 220 new outlets and closed 75 in 2023, noticed like-for-like gross sales bounce 9.4 per cent within the remaining quarter to 30 December, boosted by demand for its seasonal merchandise such because the Festive Bake.
This introduced full-year gross sales progress to 19.6 per cent and its whole retailer rely to 2,473 areas, the excessive road baker stated on Wednesday.
Growth: Christmas commerce palms end-of-year increase to excessive road baker Greggs
Greggs grew its enterprise ambitiously final yr, surpassing plans to open 150 new UK shops and trial 24-hour drive-thru areas.
It additionally benefited from prolonged buying and selling hours and rolling out a supply service to 710 outlets by way of Uber Eats, alongside its present service provided with Just Eat.
It is even contemplating increasing past the UK, with its chief government Roisin Currie suggesting the group may trial abroad operations 15 years after a failed foray into Belgian markets.
Greggs instructed buyers on Wednesday it might use its £195million money pile ‘to speculate additional in rising each our store property and provide chain capability’, with expectations of ‘between 140 and 160 internet new outlets in 2024’.
Supply chain funding sees a fourth manufacturing line commissioned at Balliol Park in Newcastle upon Tyne to ‘present vital extra manufacturing capability for our iconic savoury rolls and bakes’, it added.
Greggs can be increasing the logistics capability of its Birmingham and Amesbury distribution centres.
Chief government Currie stated: ‘We enter 2024 with plans to proceed to put money into our outlets and develop provide chain capability to ship the expansion technique, supported by our robust steadiness sheet.
‘Our value-for-money supply, and the standard of our freshly ready food and drinks proceed to evolve and place us nicely for additional progress within the yr forward.’
Greggs additionally cheered easing inflation pressures and anticipates ‘a extra steady value base within the coming yr’.
While it famous wage inflation stays excessive, it assured buyers this might additionally ‘present assist to buyer incomes’.
Greggs shares have been up 9.9 per cent to 2,718p in early buying and selling.
Matt Britzman, fairness analyst at Hargreaves Lansdown, stated: ‘One of Greggs’ key strengths is providing a decrease worth deal with and preserving that proposition intact is vital, particularly when client incomes are stretched.
‘The most vital factor is to see volumes pattern greater, and that continues to be the case.
‘The job’s not finished. Expect to see extra progress over 2024 as funding continues into the digital providing, supply partnerships and increasing the shop property.’
Greggs is one among many excessive road corporations reporting Christmas buying and selling figures this week, with Sainsbury’s additionally reporting on Wednesday, and M&S and Tesco reporting on Thursday.
Yesterday B&M revealed plans to dole out a 20p per share dividend after income grews by 5 per cent to £1.65billion within the 13 weeks ending 23 December.
Last week Next printed robust festive figures, whereas JD Sports was compelled to trim its revenue expectations in an surprising flip.
