Greggs warns of continuing sales decline

 
Kasmira Jefford
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GREGGS warned yesterday that sales will continue to fall for the rest of the year as cash-strapped customers cut back further on their visits to the group’s bakery stores along with the dampening effect of poor weather conditions.

The UK’s largest bakery chain posted 2.6 per cent fall in like-for-like sales in the 14 weeks to 6 October and warned that like-for-like sales were likely to remain in negative in the final quarter as consumers remain constrained.

The group has been offsetting weak like-for-likes by increasing profits from its wholesaling and franchising business. It also stepped up aims to open 100 new outlets this year, ahead of its original target of 90 stores.

As a result Greggs has also accelerated plans to start building a second manufacturing facility in the south of England, next year.