Greggs growth slows

Mar 11 2009 Huddersfield Daily Examiner

BAKERY chain Greggs has forecast “only marginally positive” sales growth for 2009 as the recession bites.

But the firm, which has several shops in Huddersfield, said it had faith in its pricing policy to offer value for money to customers.

Greggs, which has about 1,400 shops across the UK, said it had shown resilience with a 4.4% rise in like-for-like sales in 2008.

Pre-tax profits fell by 3.3% to £45.2m in the year to December 27 – although this exceeded market expectations.

Plunging consumer confidence meant comparable sales growth slowed from 5.1% in the first half to 3.9% in the final six months, while sales since the year-end have risen by 1%.

However, Greggs said snow last month hit sales in the 10 week period to March 7. Excluding the two weeks of disruption by the weather, sales rose by 2.9%.

Newcastle-based Gregg has launched a range of cut-price products, including 99p sandwiches, to appeal to cash-strapped consumers.