Greggs PLC Trading Statement (5782X)
May 09 2016 - 1:00AM
UK Regulatory
TIDMGRG
RNS Number : 5782X
Greggs PLC
09 May 2016
9 May 2016
GREGGS plc
TRADING UPDATE
Greggs is the leading bakery food-on-the-go retailer in the
UK,
with over 1,700 retail outlets throughout the country
A good start to the year
-- Total sales up 5.7% in first 18 weeks of 2016 (2015: 5.9%)
-- Company-managed shop like-for-like sales in the first 18
weeks up 3.7% (2015 comparator period: 6.0%)
-- 55 shop refits completed
-- 43 new shops opened, 21 closures
-- Breakfast, hot sandwiches and 'Balanced Choice' options driving growth
-- Consultation on supply chain investment proposals progressing
In advance of the company's AGM tomorrow, Greggs plc is
providing an update on its business.
Trading performance
Total sales for the 18 weeks to 7 May 2016 grew by 5.7 per cent
and like-for-like sales in company-managed shops grew by 3.7 per
cent over the same period. As has been widely reported, conditions
on the High Street were softer in March before recovering in recent
weeks; these conditions were reflected in our own performance.
The improvements made to our shops and our product range
continue to drive growth in sales. Our hot sandwich range and
extended breakfast menu have proved particularly popular and the
introduction of our flat white coffee is helping to continue our
delivery of double-digit growth in sales of hot drinks. We have
extended our fresh fruit offer and have been encouraged by trials
of our upgraded range of salads, which are freshly prepared in
store and now available nationwide. All salads meet our Balanced
Choice criteria and include some innovative new products such as
Teriyaki Chicken Noodle and Falafel with Houmous.
Shops
In the first 18 weeks we completed 55 shop refurbishments and in
total will refit around 200 shops this year. These transformational
investments continue to drive incremental sales growth as customers
enjoy the improved shopping environment and additional facilities
such as seating.
In the year to date we have opened 43 new shops, including 23
franchised units in transport locations. We closed 21 shops, giving
a total of 1,720 shops trading at 7 May (comprising 1,592
company-managed shops and 128 franchised units). Our shop openings
continue to focus on new food-on-the-go locations and the
relocation of existing shops to support further growth. In March we
opened our first company-managed shop in Northern Ireland, at
Boucher Retail Park in Belfast. The shop is trading well and in the
next few weeks we will open our first unit in central Belfast.
Consultation on supply chain investment proposals
At the time of our preliminary results in March we announced
that we would be entering into consultation with trade union and
employee representatives to consider proposals to close three
bakeries as part of a proposed GBP100m investment programme in our
manufacturing and distribution operations. The formal collective
consultation on our proposals has now ended and we are progressing
with our plans to close the three bakeries involved. The smallest
site at Sleaford is now being closed and we expect to close our
Twickenham bakery in the fourth quarter of 2016 followed by
Edinburgh in the second quarter of 2017.
Our people impacted by these proposals have demonstrated their
commitment and professionalism during a difficult period and our
focus now is to work with them individually to ensure that we
manage these changes in line with Greggs' values as a responsible
employer. Alongside these closures we will continue to develop our
plans to invest in our remaining supply chain network over the next
five years in order to create centres of excellence serving our
growing shop estate.
Outlook
We have made a good start to the year. Input cost inflation
remains low despite increased wage costs and, with a strong
pipeline of product initiatives and plans to invest in our shops
and supply chain, we expect to make progress in line with our
previous expectations.
ENQUIRIES:
Greggs plc Hudson Sandler
Roger Whiteside, Chief Executive Wendy Baker / Alex Brennan / Fern Duncan
Richard Hutton, Finance Director Tel: 020 7796 4133
Tel: 0191 281 7721
This information is provided by RNS
The company news service from the London Stock Exchange
END
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