Greggs sales up as brekkie menu thrives

GREGGS bakery reported another period of sales growth yesterday after being boosted by its new breakfast menu.

The group said yesterday like-for-like sales rose by 0.6 per cent in the 18 weeks to 8 May, slightly lower than the rate in March but still in line with its expectations.

The baker, which has 1,400 outlets, sold two million breakfasts following February’s launch of its early morning offering. It has sold two million rolls with bacon or sausage since the move, while 22 new products have been added to the menu.

Greggs is planning to open 50 to 60 new shops and do 120 refits this year.

The company has said that it considers 2010 to be a “marginally positive” year.

Chief executive Ken McMeikan said: “The unknown at the moment for us is what decisions will be taken [by the new Conservative/Liberal Democrat coalition government] and what impact that will have on both consumer confidence and consumer spending.”

The Newcastle-based firm sells sausage rolls, sandwiches, bread and cakes to over a million customers a day from 1,420 shops. Last year the firm detailed plans to open 600 more stores, create 6,000 jobs, and upgrade its supply chain at a cost of up to £300m.

Clive Black, analyst at Shore Capital, said: “We are moderately encouraged that new lines are being well received by customers.”