New results from Greggs have revealed a 3.5% increase for the third quarter despite the staffing and supply chain disruption.
The bakery chain said on Tuesday that it will continue its plans for new store openings thanks to strong sales over the year. Greggs plans to open 150 new shops over 2021.
Greggs said that trading was particularly strong in August thanks to the ‘staycation’ effect. In the year to date they have opened 84 new shops, giving a total of 2,146 stores trading in the UK.
“Greggs has not been immune to the well-publicised pressures on staffing and supply chains and we have seen some disruption to the availability of labour and supply of ingredients and products in recent months,” said the group in a trading statement.
“Food input inflation pressures are also increasing; whilst we have short-term protection as a result of our forward buying positions we expect costs to increase towards the end of 2021 and into 2022.”
Commenting on the results, Ross Hindle, Analyst at Third Bridge, said: “Supply chain issues and labour shortages remain a key risk for Greggs with no end in sight. Temporary interruptions for some ingredients could result in the Group reducing its range and would hamper current momentum.”