Greggs predicts return to pre-pandemic profits as sales rise 25 per cent

A baked goods takeaway chain has today announced that it has seen “strong” sales recovery over the past eight weeks.

Greggs, which has more than 2,000 UK stores, said that its total sales in the 18 weeks of the year so far have risen from last year’s £280m to £352m - just 5.6 per cent behind 2019’s £373m.

The 25 per cent increase comes as non-essential retail stores reopen, with a boost in High Street footfall driving demand for Greggs’ products.

Following the increased sales, the company has predicted that its full year profits could be similar to 2019’s levels.

Greggs commented: “We saw a significant pick up in sales with the reopening of non-essential retail from 12 April, in part reflecting the pent-up demand for retail which has boosted High Street footfall. Our two-year LFL [like-for-like] growth since 12 April has been positive.

“Delivery sales continue to contribute positively to performance, representing 8.2 per cent of company-managed shop sales in the most recent eight weeks.

“We have now successfully rolled out delivery services to 800 of our shops.

“The current trading environment is clearly highly unusual, making it difficult to predict how sales will develop.

“In the coming weeks, the government’s roadmap is likely to lead to further relaxation of restrictions and we will see increased competition as cafes and restaurants are able to compete more effectively with our largely take-out offer.

“Nonetheless we are pleased with the progress that we have made so far this year in both the walk-in and delivery channels.

“Providing guidance on the profit outcome for 2021 remains difficult given the uncertainties surrounding trading conditions.

“However, given our recent trading performance, the board now believes that profits are likely to be materially higher than its previous expectation, and could be around 2019 levels in the absence of further restrictions.”

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