Coffee and doughnuts help boost Greggs

FAIRTRADE coffee and Superstar Doughnuts have helped Greggs to boost sales by 5.4% in the third quarter of the year.

Greggs

FAIRTRADE coffee and Superstar Doughnuts have helped Greggs to boost sales by 5.4% in the third quarter of the year.

The Newcastle-based baker said like-for-like sales were up by 0.8% for the period, beating the 0.4% growth in the first half of the year.

The chain has opened 53 shops so far this year and is on course to hit its target of 80 by the end of the year. The openings include the one-off trial coffee shop Greggs Moment in Newcastle and a store at the Westfield Stratford City development in London, which broke all Greggs first day trading records.

Chief executive Ken McMeikan said: “In a tough environment, we have increased our investment in promotional activity, offering a range of outstanding meal deals that help our customers to make their money go further.

“We continue to see good growth in breakfast sales including the roll out of Fairtrade coffee to all our shops. In addition, the launch of our new Superstar Doughnuts has been extremely popular, with more than 1.4 million sold in the first five weeks.”

Shoppers will also be able to buy frozen Greggs branded sausage rolls in more than 700 Iceland stores after a successful trial in 10 shops.

And Greggs opened its two new bakeries - the £16.5m centre in Newcastle and its £4.5m specialist confectionery bakery in Penrith, and completed almost 50 shop refurbishments over the period.

McMeikan said: “The trading environment remains challenging, with consumers’ disposable incomes under pressure.

“We will continue to respond to this by offering our customers outstanding value through targeted promotional activity, supporting some of this investment through our continuing drive to improve business efficiencies.

“Looking further ahead to 2012 there are signs of an easing in the rate of commodity price inflation in some areas, with the notable exception of energy.”

 
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