Greggs, the popular British bakery chain, has reported impressive sales growth for the third quarter of 2024 as the group opens more stores and shakes up the menu. Sales jumped by 10.6% in the 13 weeks leading up to 28 September, and year-to-date sales are climbing even higher at 12.7%.
Like-for-like sales in company-managed shops also showed robust growth, increasing by 5% for the quarter and 6.5% year-to-date. September proved to be the standout month, delivering the strongest performance of the quarter.
Menu development has played a crucial role in marinating Greggs’ sales growth. Greggs’ new over-ice drinks range has proved popular and is currently available in 800 shops. Such has been the take-up; Greggs says the line is set to reach 1,000 locations by year-end.
Greggs hopes introducing new items to the Autumn menu, such as the All-Day Breakfast Baguette and Mexican Bean & Spicy Cheese Flatbread, will support sales as we move into the colder months.
Extended trading hours and the expansion of digital channels have also contributed significantly to the company’s growth.
The company expects to open between 140 and 160 net new shops in 2024, including approximately 50 relocations.
The Board’s expectations for the full-year outcome remain unchanged, with the strong sales growth maintaining confidence in existing guidance.
In some good news for lovers of the humble sausage roll, Greggs now anticipates that overall cost inflation for 2024 will be towards the lower end of the previously communicated 4-5% range.
Greggs has been criticised by thrifty consumers for hiking prices in recent years, with sausage roll prices rising exponentially.