Bakery chain Greggs says sales increased 23% to £1.51bn last year on the back of expansion and a return of shoppers and workers to high streets.
The Newcastle-based plc, which opened 186 new shops in 2022, said like-for-like sales in company-managed shops were 17.8% higher than 2021. And despite the impact of cold weather and rail strikes in the run up to Christmas, fourth quarter receipts in company-managed shops grew by 18.2% when compared with the same period the year before when high streets suffered the disruption of the Omicron Covid variant.
Greggs said its customers were "clearly" seeing cost-of-living pressures but that its range of food-on-the-go products remained attractive. The healthy sales came despite Greggs saying shoppers were "clearly" experiencing cost-of-living pressures and the chain making several price increases to some of its key products during the year, including to the sausage roll which had started 2022 at £1 and now costs £1.20.
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Early evening trading was said now said to be the fastest growing part of the day among 500 of its shops that are open to 8pm, and it said there was high demand for its festive bake, the vegan alternative as well as sweet mince pies and hot drinks such as its salted caramel latte.
The bakery giant, which now operates 2,328 shops, also highlighted the growing importance of plant-based foods to its produce range, and pointed to the introduction of its Vegan Festive Baguette. There was also increased use among customers of the Greggs App which offers loyalty rewards and access to features such as click and collect, nutritional information and delivery.
On the back a strong year's trading, Greggs told investors it anticipated full year 2022 results in line with its expectations and that it was confident of more progress in 2023. Plans to invest in existing locations, supply chain capacity and around 150 net new shop openings this year were said to be underpinned by a cash position of £191m. Earlier this week BusinessLive revealed plans to open a third 'Tasty by Greggs' themed cafe in the Northumberland Street Primark store in Newcastle.
Though "not commercially significant" Greggs chief executive Roisin Currie told BusinessLive the tie-up had been "a lot of fun" and had created a useful marketing opportunity. She hinted at another two potential Primark openings and also said the firm would continue look for future partnerships.
Chief executive Roisin Currie said: "I am proud of the progress Greggs made during 2022 in challenging conditions. Our teams did a magnificent job serving customers and managing the growing demand for Greggs products as we expand our shop estate and offer greater availability through digital channels and longer trading hours, whilst continuing to extend our menu to offer more choice.
"We enter 2023 in a strong financial position that will enable us to invest in shops and supply chain capacity to bring Greggs to even more customers across the UK. While market conditions in 2023 will remain challenging, our value-for-money offer of freshly-prepared food and drink is highly relevant as consumers look to manage their budgets without compromising on quality and taste."
Russell Pointon, director of consumer at investment research group Edison Group, said: "As the new year rolls on, Greggs is in a strong financial position, with a focus on investing in shops and the supply chain to bring its offering to even more customers in the UK. Against a backdrop of ongoing macroeconomic headwinds, Greggs has proven that its value-for-money proposition is the ingredient required to thrive. Management expects another year of good progress in 2023."
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