Greggs issues major update over opening eight new shops in UK

On a net basis, this means a further eight new Greggs sites could potentially open in 2024, the bakery giant has confirmed in a trading update.

Greggs has said it was on track to open between 140 and 160 new shops this year. On a net basis, this means a further eight new Greggs sites could potentially open in 2024, the bakery giant has confirmed in a trading update.

Greggs has noted that 66 stores closed in the year to date. In an update on Tuesday, the company reported that like-for-like sales in its company-managed shops increased by 5% in the 13 weeks leading to September 28, down from a 7.4% rise in the first half of the fiscal year.

Greggs attributed its growth not only to the opening of new stores but also to expanding its product offerings, including new pizza and doughnut selections, extending operating hours into the evening, boosting delivery sales, and fostering customer loyalty through the Greggs App.

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“Whilst acknowledging ongoing economic uncertainty, the Board expects the full year outcome to be in line with its previous expectations,” the company said in a statement. To date, the company has opened a net of 86 shops this year, which includes 43 relocations, bringing the total to 2,559 locations.

Additionally, Greggs now anticipates that its cost inflation for 2024 will be at the lower end of the previously communicated range of 4% to 5%. The food-on-the-go firm reported a 5% increase in like-for-like sales in its company-owned stores, slower than the 7.4% seen in half-year results but against tougher comparatives the year before.

An improved cost outlook and September’s strong finish to the quarter meant analysts at Jefferies said they saw no reason to change their positive stance on the group. The bank has a target price of 3450p.

With a focus on affordability and convenience, bakery chain and high street staple Greggs has been extending its evening trading hours with over 1,200 branches open past 7pm.