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UK food-to-go retailer Greggs said it was on track to double sales by 2026 as the Newcastle-based group expects to open up to 160 new shops this year after adding 145 in 2023.
The seller of sandwiches, sausage rolls and other baked goods said it now had 2,473 shops after opening a record 220 last year, with 75 closures. It plans to open over 500 more in the future.
Chief executive Roisin Currie said the company, which reported a 13 per cent rise in adjusted pre-tax profits for 2023, saw “significantly more than 3,000 shops in the UK over the longer term”.
Its shares rose 2 per cent in early Tuesday trading.
Greggs said like-for-like sales grew 8.2 per cent in the first nine weeks of 2024 compared with the same period last year, helped by expanded evening trading and digital sales.
It reported that pre-tax profits, excluding exceptional income, rose to £167.7mn compared with £148.3mn in 2022. Unadjusted pre-tax profits came in at £188.3mn, thanks to a one-off insurance claim of £20.6mn.
The company said the expansion of its evening trading offerings had boosted sales, with 1,200 stores now open until 7pm or later.
Greater availability through “digital channels” Uber Eats and Just Eat had also contributed to volume growth, Greggs said. Sales through those platforms, which now serve 1,440 shops, were up 23.6 per cent in 2023.
Total sales for the full year rose 19.6 per cent to £1.8bn, while like-for-like sales in company-managed stores increased by 13.7 per cent compared with 2022.
Falling price inflation contributed to fourth-quarter like-for-like sales growth across its own-managed shops slowing to 9.4 per cent, compared with 14.2 per cent in the previous three months.
“Inflationary pressures are reducing and we have improved visibility of costs in the coming year,” the company said, stating that there had been no change to management’s expectations for 2024.
Greggs said its share of the overall “food-to-go” market hit 8.2 per cent, while its share of the food-to-go breakfast market rose to 19.6 per cent, making it the market leader.
