Greggs aims to open new sites despite Coronavirus taking a bite out of sales, as staffing cuts loom
High street bakery chain Greggs this morning said it will end 2020 with more sites than it started with, despite coronavirus closures.
Despite this, Greggs has begun consultations with staff to reduce employment costs which could lead to job losses.
The maker of steak bakes said in 2020 it has reactivated its store opening pipeline after shuttering some sites due to coronavirus.
Its new store openings will be away from city centres and accessible by car, it said.
Greggs said like-for-like sales are still down by nearly a quarter year-on-year for the four weeks to 26 September.
Investors found the market update rather unappetising, sending shares down more than 7.9 per cent this morning to 1,122p.
The high street bakery chain has closed off its seating areas, so missed out on the sales boost provided by the government’s Eat Out to Help Out scheme.
The vegan sausage roll maker said since reopening our full estate on 2 July like-for-like sales in company-managed shops have averaged 71.2 per cent of 2019 level in the 12 weeks to 26 September.
It has started talking with unions to reduce employment costs, likely resulting in job cuts, as the government’s furlough scheme comes to an end.
Greggs said it was aiming to minimise the risk of job losses by negotiating reduced hours in our shops.
The high street chain said it was now in a positive cash position and continued to pay rents monthly in advance and is up to date on these and all other payables.