LFL sales growth thinner at Greggs

6th Oct 2010 07:13

Hungry Britons have been tucking into the bacon rolls sold by Greggs, contributing to continued sales growth for the savoury snacks seller.Greggs said total sales for the 39 weeks ended 2 October 2010 increased by 2.6%, while like-for-like (LFL) sales grew 0.5%.Sales growth slowed some in the third quarter, however. In the 13 weeks to 2 October total sales grew by 2.1% and LFL sales increased by 0.2% year on year.The company said the humble bacon roll is now its best selling sandwich line. Breakfast sales have been particularly strong this year and the company is expanding its range to include dangerously exotic creations such as croissants and pan au chocolat, as well as the health conscious eater's favourite, porridge.A net 32 retail outlets have been opened in the year so far, bringing the estate up to 1,451 shops as at 2 October. Over the course of the whole year the company expects the number of new shops it opens to be at the upper end of the indicated range of 50 - 60.The company is also well on course to meet its target of 120 refurbishments this year including 30 concept shops.There has been no material change in the net cash position since the end of the first half, when the company had £24.6m on the balance sheet."As we expected, the trading environment has been tough and is likely to remain so, with consumer spending continuing to be constrained and inflationary pressures building for next year," said chief executive Ken McMeikan. "We anticipate that like-for-like sales in the final quarter will be broadly flat and therefore marginally positive over the year as a whole," McMeikan added.