Greggs resumes store-opening programme as sales recover in September

The food-to-go specialist said like-for-like sales in company-managed shops recovered to 76% of 2019 levels during the four weeks to September 26.

Greggs has rolled out delivery and click-and-collect options across the UK in the wake of the coronavirus crisis and now expects to open a net 20 new stores this year.

The business said the new sites would be “predominantly in locations accessed by car” – a shift away from its previous strategy to focus on travel hubs such as train stations.

Since reopening its full estate on July 2, like-for-like sales in company-managed shops have averaged 71% of last year’s levels, despite what the business called a “difficult” August.

Greggs closed all seated areas in its stores and was therefore unable to participate in the government’s Eat Out to Help Out scheme, which ran throughout the month.

But it said it had seen “increased out-of-home activity” in September, driving a recovery in customer visits to its shops. It is now making more of its product offer available as a result.

Despite its progress, Greggs has launched a consultation with staff to reduce its employment costs as it prepares for the conclusion of the furlough scheme next month.

Greggs said it had to “ensure that our employment costs reflect the estimated level of demand from November onwards”.

It said it would “minimise the risk of job losses by negotiating reduced hours” in its shops.

Greggs is expected to provide an update on the financial impact of those changes when the consultation period ends in November.