Greggs has revealed ambitious plans to open more stores across the UK in the coming year, fuelled by a surge in profits. The bakery chain is gearing up to support a total of 3,500 branches nationwide, marking a significant expansion of its business.
In the first half of 2024 alone, Greggs opened 99 new shops, enhancing its presence in various locations. Despite the closures and relocations of some stores, the company is seeing substantial growth. This expansion accompanies a noticeable increase in sales and profits, cementing Greggs’s position in the market.
New Store Openings
Greggs has announced plans to open dozens of new stores in the UK this year. This follows a significant increase in profits for the bakery chain.
From January to June, the company opened 99 new shops, including 25 franchised outlets. However, Greggs also closed 18 shops and relocated 25. The chain currently has just over 2,500 branches across the country.
Financial Performance
The bakery chain reported a 16% rise in underlying pre-tax profits for the first six months of 2024. Profits reached £74.1 million, compared to the same period last year. Total sales also increased by nearly 14% to £960.6 million.
Greggs experienced price increases in some menu items. This was to cope with the pressure on its staff wage bill. Menu items like bakes and sandwiches went up by 5p and 10p, but meal deals remained the same price.
Employee Wages
Chief executive Roisin Currie stated that there were currently no plans for further price increases this year. This was despite recent salary raises for its 32,000 employees.
The salary increases were made ahead of the introduction of the new National Living Wage, which is set at £11.44 per hour from April.
Ms Currie said, ‘Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers.’
Product Range and Sales
Greggs credited its iced drinks range and pizza deals for contributing to its growth. There were also better sales in the evening, which helped the company.
Ms Currie noted, ‘Our success is founded on the exceptional value that Greggs offers to customers looking for food and drink on-the-go and the fast and friendly service delivered by our colleagues.’
The company continues to expand its range of products and the number of branches across the country.
Future Expansion Plans
The company is investing in its supply chain to support up to 3,500 outlets in the future.
Greggs’s half-year report showed confidence in opening a net total of between 140 and 160 new shops in 2024.
Expanding the location diversity of its branches is key to Greggs’s strategy. Rather than just focusing on town and city centres, Greggs has achieved success in roadside spots. Now, these spots make up a quarter of the company’s branches.
Overall Business Strategy
Aside from opening new stores, Greggs is diversifying its branch locations. This includes town centres, city locations, and roadside spots.
Greggs aims to make its food and drink more accessible to a wider range of customers. This includes focusing on value and convenience.
With a clear growth strategy, Greggs shows confidence in its future expansion.
Conclusion
Greggs’s strong financial performance and strategic expansion plans indicate promising growth ahead.
The bakery chain’s focus on value, accessibility, and diverse branch locations is driving its success.
Greggs’s robust financial health and strategic expansion plans indicate a very promising outlook for the future. The bakery chain’s commitment to value, accessibility, and diversification of branch locations drives its ongoing success. Overall, their achievements reflect a well-executed business strategy that is poised for further growth.
