BBC News Business reporter Mitchell Labiak reported that Greggs exceeded £2 billion in revenue last year, with a surge in sales of items like pizzas, chicken goujons, and potato wedges, although the sausage roll remained the top-selling product. The company, traditionally renowned for its baked goods, indicated that the expansion of its menu reflected its aspirations for further growth.
Greggs revealed an increase in evening sales as it shifted focus away from the High Street towards train and bus stations. Despite falling short of its sales projections due to concerns about the cost of living, the company witnessed a 12% drop in its shares on Tuesday morning. Customers, plagued by worries over energy costs and escalating mortgage and rental expenses, contributed to the subdued performance in sales.
In 2024, Greggs recorded a pre-tax profit of £204 million, marking an 8.3% rise from the previous year. Chief Executive Roisin Currie highlighted the rising popularity of the hot food menu, particularly driven by pizza deals. However, she emphasized that the expansion of the menu would not detract from the core products, affirming that savory baked goods still accounted for a third of the company’s sales.
The company expanded its reach by opening 145 new shops last year, pivoting away from the dominance of High Street locations. Previously, 80% of Greggs shops were situated on the High Street, whereas almost half of the current shops are now positioned in alternative settings such as petrol forecourts, transport hubs, and supermarkets. Greggs also observed an uptick in sales through delivery websites, with a significant portion of its customer base now utilizing its app. Analyst Mamta Valechha from Quilter Cheviot praised Greggs for its strategic initiatives in opening more stores, diversifying its menu, extending evening trading hours, and bolstering digital sales to navigate through the prevailing challenges in the retail sector
Read the full article from The BBC here: Read More
