Greggs Q1 sales surge 27.4% to £495m

Greggs has reported its like-for-like sales in company-managed shops surged 27.4% to £495m in the first 19 weeks of FY22 (Q1), up from £378m in Q1 FY21 when restricted trading conditions impacted sales.

However, sales levels in larger cities and in office locations continue to lag the rest of the estate, although transport locations have reportedly shown a marked increase in activity in recent weeks.

In particular, sales of hot food and snacks are showing “strong” growth, with chicken goujons and potato wedges proving the most popular.

Greggs said its like-for-like sales growth in the most recent ten weeks to 14 May (when lockdowns in 2021 were easing) has averaged 15.8%, and the company expects this figure to continue to normalise as it starts to compare with more robust trading periods last year.

Additionally, Greggs opened 49 new shops in Q1, including 18 with its franchise partners. Recent shop openings include a number of retail parks and new travel-based units at Birmingham and Liverpool airports.

In the year-to-date, the company has closed six shops, giving a total of 2,224 shops trading until 14 May, which comprises 1,831 company-managed shops and 393 franchised units. 

Meanwhile, Greggs announced that whilst uncertainties remain, it is in line with its plan and the board’s expectations for the full year outcome remain unchanged.

Greggs said: “We have made a good start to 2022, with sales in line with our plan and a strong pipeline of new shop acquisitions ahead. Looking ahead, market-wide cost pressures have been increasing and consumer incomes will clearly be under pressure in the second half of the year.

“We will continue to work to mitigate the impact of cost pressures whilst protecting Greggs’ reputation for exceptional value.”