​Greggs tumbles into the red but hails ‘progressive recovery’ in sales

The food-to-go specialist suffered a pre-tax loss of £14m in the year to January 2, compared with a £108m profit a year ago.

Total sales dropped 31% to £811m during the period, while like for likes in Greggs’ company-managed shops plummeted 36%.

However, Greggs said its top line made a “progressive recovery” during the second half of 2020 and also hailed a “better-than-expected” start to its new financial year as it seeks to rebound from the Covid-19 crisis.

In the 10 weeks to March 13, like-for-like sales in company-managed shops fell at the slower rate of 29%, or 22% excluding Greggs’ Scottish stores – all of which have been closed to walk-in customers for the majority of 2021 to date.

Greggs hailed the impact of its digital drive during the pandemic in reducing the impact on its top line. The business has launched a click-and-collect proposition and also joined forces with Just Eat to offer delivery to customers’ homes.

Delivery is now available from more than 600 Greggs shops and accounted for 5.5% of total sales in company-managed shops in its fourth quarter.

Despite the impact of the Covid-19 crisis, Greggs said it retains “confidence in the long-term growth opportunity”. It continues to hold a portfolio of more than 2,000 shops and plans to open a net 100 new stores during the course of its new financial year.

Greggs chief executive Roger Whiteside insisted the business was “well placed to participate in the recovery from the pandemic”. He said opportunities to build its digital capabilities, expand into new channels and offer ranges to cater for new dayparts would drive performance “in the years to come”.

Whiteside added: “In a year like no other I believe that the Covid crisis has in many ways demonstrated the strength of Greggs.

“It has shown the resilience of our business model, but most of all the strength of our people who have worked hard throughout to maintain an essential service providing takeaway food to customers unable to work from home, many of whom were themselves key workers.”