Greggs enjoys sales uplift thanks to healthy focus

Sales at Greggs have grown by 6% in the 26 weeks to 2 July, thanks to a greater focus on food to go and a stronger healthy food and drink range.

Total first half sales hit £422m while like for like company-owned shop sales grew by 3.8%.

Greggs chief executive Roger Whiteside said that reinforcing the freshness and value of its offer had been key to tapping into changing food to go trends.

“We added to our Balanced Choice range with sales growing strongly as more and more of our customers recognise the quality, range and value we offer in healthy food choices,” he said.

The range was extended with a number of healthy salad to go items including a Chargrilled Chicken Salad which contains just 200 calories.

Breakfast remains the fastest-growing part of the day, and Greggs has also broadened its coffee offer in the past six months in order to meet rising demand.

A further 86 shops have also been renovated during the period and now feature Greggs’ latest ‘bakery food on the go’ format. More than 100 other stores are set to be refurbished by the end of the financial year and Greggs plans to open a further 70 new stores.

Greggs currently has 1,730 stores trading across the UK, 136 of which are franchise units.

Retail analysts Verdict Retail said Greggs’ fresh, value approach was appealing to “fast paced consumers” and could prove lucrative in the post-Brexit market.

“Its efforts to meet customer demand for healthy and affordable food could attract consumers to trade down from more premium players in the food to go market,” analyst Sneha Alexander said.

“New options – such as the flat white and mocha coffees - demonstrate savvy range innovation and are combined with value prices – such as its £2 meal deal. Greggs’ ability to retain quality whilst remaining price competitive will be important in the more uncertain post-Brexit market.

“The Greggs rewards app has also targeted consumers on the move, offering mobile payment options to speed up the purchasing process, as well as introducing exclusive seasonal offers and birthday treats for registered members.”