Food-to-go specialist Greggs has upgraded its full-year outcome as both in-store and online sales jumped in the third quarter despite ongoing supply chain issues.
In its third quarter, Greggs reported that two-year like-for-like sales were up 3.5% “despite staffing and supply chain disruption”; it added that sales through online delivery were “developing well” and were now available from 943 stores.
Sales in August were “particularly strong” for Greggs, due to the “staycation effect”, and remained positive throughout September with 3% growth on two-year like-for-like sales in the four weeks to October 2.
Greggs said it had opened 68 net new stores so far during 2021 and was still on target to open 100 by the year’s end. The food-to-go specialist also said its new vegan ranges had been “well received” by customers, noting in particular the strong performance of its vegan sausage, bean and cheeze melt, along with a vegan ham and cheeze baguette.
New store openings in the third quarter included three drive-thru locations and the retailer’s first-ever store in Canary Wharf. Greggs currently has a total of 2,146 shops trading as of October 2.
The food-to-go specialist also said it plans to double its annual turnover over the next five years to £2.4bn by 2026 and would look to accelerate new shop openings to 150 a year starting in 2022.
Greggs has upgraded its full-year expectations, noting: “Operational cost control has been good [in the period] and the strong sales performance in the third quarter gives us confidence as we move into the autumn.”
However, the business did flag that ongoing supply chain and labour shortage issues were having an effect on trading. It also said it expects food inflation to continue to grow into 2022.
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