Greggs on a roll

6th Oct 2011 07:30

Bakery chain Greggs served up a 0.8% increase in third quarter like-for-like sales and remains confident in its full year prospects despite the persistently tough retail environment.The Newcastle based baker reported total third quarter sales of 5.4%. Year to date sales increased 4.6% while equivalent like-for-like sales rose 0.6%.Greggs, famous for its value-for-money sausage rolls, pasties and cakes said, "The trading environment remains challenging, with consumers' disposable incomes under pressure. We will continue to respond to this by offering our customers outstanding value through targeted promotional activity." Greggs said meal deals, good growth in breakfast sales and the launch of its new 'Superstar Doughnuts' helped pull in cash squeezed customers."We remain confident in the prospects for the group and our expectations for the year are unchanged," Greggs added.The group, which has opened 53 new shops to date, said its continued investment and expansion programmes are on track and the financial position of the business is strong. The company is planning for a record 80 net new openings.While the group expressed concern about the trading environment, looking further ahead to 2012 it said there are signs of an easing in the rate of commodity price inflation in some areas, with the notable exception of energy. ---cj